In a shocking quarterly update, Intel will cut more than 15 percent of its workforce. The cuts, which could affect more than 15,000 jobs, are part of a $10 billion cost-cutting plan to restore the company’s financial stability. Intel posted a net loss of $1.6 billion in the second quarter, down from the $1.5 billion net income it reported in the same period in 2023.
CEO Pat Gelsinger addressed the employees recognizing the scope of today’s announcements. “This is painful news for me,” he said. “I know this will be hard for you to read. This is an incredibly difficult day for Intel as we make the most consistent changes in our company’s history.”
Along with the job cuts, the cost-cutting plan includes creating separate financial statements for Intel Products and Intel Foundry. The Intel Foundry subsidiary saw an operating loss of $2.8 billion in Q2, which was more than the $1.8 billion operating loss it saw in the second quarter of last year. Intel is in the process of overhauling its foundries to make them more competitive. Temporarily, it had to rely on other companies for some production. TSMC, the same manufacturer used by Apple, Qualcomm and AMD, is making the new one .
When the 13th and 14th generation desktop CPUs began to live, the company received an additional hit in the public eye. . While a fix is expected this month to prevent any further problems, any damage caused by microcode bugs to CPUs .
