In an unprecedented restructuring, Intel Corporation has shed around 15,000 employees, which makes up 15% of its entire workforce. According to a message sent out to peers by CEO Pat Gelsinger, this move is part of a broader strategy aiming to realize savings of $10 billion by the year 2025.
In his statement, Gelsinger acknowledged the emotional toll that the layoffs will have on the workers, calling them “painful.” “We are making some of the most significant changes in our company’s history today, which makes it an extremely difficult day for Intel,” he said. The company’s present cost structure, Gelsinger said, is unsustainable, and drastic measures are required due to high costs and small profit margins.
As part of the reorganization, Intel intends to improve its retirement benefits for qualified staff members and launch an application procedure for voluntary departures the next week, enabling some staff members to leave the firm at their discretion.
“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” Gelsinger said, expressing the difficulties of breaking such news. He assured staff members that Intel’s basic principles of integrity, openness, and respect will be prioritized while putting these changes into practice.
The Chief Executive Officer (CEO) advised the employees that they should brace themselves for “more troubled days ahead” in addition to forecasting less prospective financial performance in the latter part of 2024 when compared to previous expectations. “We’re making adjustments as required so that we can build upon our success and prepare ourselves for greater growth,” he stated; underlining that these modifications were meant to pave the way for growths coming up.
Intel’s layoffs also mirror the broader problems confronting the computing industry as it adapts to changing consumer preferences and economic limitations.
