As the global recession keeps going, more and more companies are laying off their staff. Intel is no different, as it will layoff nearly 18,000 staff members. This comprises 15% of their workforce. This move is reportedly to save around $ 20 Billion in expenses.
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Intel Mass Layoff
“Our Q2 financial performance was disappointing, even though we achieved key product and process technology milestones,” Intel CEO Pat Gelsinger stated in an earnings announcement.
According to chief financial officer David Zinsner, “headwinds” in the ramp-up of Intel’s artificial intelligence PC product and underutilised capacity at its facilities weighed on second-quarter earnings.
intel reported having 124,800 employees at the end of last year, implying that layoffs could affect approximately 18,000 employees. In June, Intel stated that it was postponing the development of a large industrial project in Israel, which was expected to cost an additional $15 billion for a chip plant.
The tightening comes just a month after Intel issued a combative statement in the face of stiff competition from competitors Nvidia, AMD, and Qualcomm, showcasing technologies it claimed will drive the artificial intelligence revolution.
For decades, Intel has dominated the market for processors that power everything from laptops to data centres. However, in recent years, its competitors, particularly Nvidia, have surged ahead in specialised AI processors.
