North News
Chandigarh, August 2
Intel CEO Pat Gelsinger has announced significant cost-cutting measures following the company’s second-quarter earnings report for 2024. According Intel,to achieve $10 billion in savings by 2025, Intel plans to reduce its workforce by approximately 15,000 roles, or 15%, with the majority of cuts expected by the end of the year. Gelsinger emphasized the need to align Intel’s cost structure with a new operating model, addressing high costs and low margins amid stagnant revenue growth.
In addition to workforce reductions, Intel will simplify its business portfolio, consolidate overlapping responsibilities, and suspend its stock dividend to prioritize business investments. The company aims to cut 2024 capital expenditures by over 20% and reduce non-variable costs of goods sold by $1 billion in 2025. Despite these challenges, Intel remains committed to its IDM 2.0 strategy, focusing on process technology leadership, manufacturing expansion, and AI integration, the Intel official statement said.
Intel will offer an enhanced retirement program and voluntary departure options for employees next week, ensuring a transparent and respectful transition process. Gelsinger stressed the importance of these measures in building a leaner, more agile Intel poised for future growth.
