Intel Corporation is reportedly going to lay off 15,000 employees, as the company makes drastic cuts. The company announced it will be seeking $10 billion in savings for 2025, which will lead to the layoffs of a large quantity of staff members.
Intel CEO, Pat Gelsinger, revealed the news of the lay offs earlier today to his staff, as the company is gearing up to make the cuts.
Intel To Have Massive Layoffs Ahead Of 2025
With competitors such as Nvidia on the market, Intel has decided to introduce a massive cost-saving plan, that will reportedly cost 15,000 employees their job.
In 2024, Nvidia was declared the world’s most profitable company as Intel missed its growth targets, according to Gelsinger.
“Our revenues have not grown as expected—and we’ve yet to fully benefit from powerful trends, like AI,” said Gelsinger. “Our costs are too high, and our margins are too low. We need bolder actions to address both—particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”
Our revenues have not grown as expected—and we’ve yet to fully benefit from powerful trends, like AI.
Pat Gelsinger, CEO of Intel
So, where did all of Intel’s losses exactly come from?
Challenges Faced By Intel Foundry
Intel also reported that a large reason for its losses in 2024 was due to challenges it faced revolving around the Intel Foundry. In fact, the Intel Foundry segment does not expect to see profits until 2027 at the earliest.
While Intel’s traditional business seems to be stable, it has still been impacted in recent days by heavy market demand for laptops and PCs. The company plans to produce a large amount of chips over the next year in hopes of competing with brands like AMD.
With a lowering share price, and many other issues revolving around Intel as of late, we can only hope to see the company bounce back, and that no more hard-working employees lose their jobs.
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