Intel will lay off 10,000 employees worldwide to further reduce costs

In October 2022, Intel announced a cost reduction and efficiency enhancement plan during its third-quarter financial report for 2022. The plan aims to cut costs by up to $10 billion by 2025, primarily by reducing expenditure and workforce in non-critical areas. Subsequently, Intel has streamlined and reorganized its organizational structure, sold or canceled numerous projects, and conducted multiple rounds of layoffs.

According to Bloomberg, sources have revealed that Intel plans to lay off 10,000 employees globally. Intel has not officially announced the layoff plan yet, but it is expected to issue a statement later this week.

It is worth noting that Intel began its layoffs in 2022, reducing its workforce by 5% by 2023 to 124,800 employees. By the start of 2024, the number had decreased to 110,000. If the current layoff information is accurate, Intel’s workforce will be further reduced to around 100,000 employees, excluding those affected by the divestiture of subsidiaries such as Altera.

Since Pat Gelsinger’s return as CEO, Intel has laid out ambitious development plans, investing heavily in wafer fabrication and next-generation product development. Market analysts suggest that Intel must overcome short-term challenges to achieve its long-term goals, including establishing more advanced chip manufacturing facilities and delivering new products for the AI/high-performance computing and client markets. One of the immediate measures is to reduce the workforce to lower expenses.

Recently, Intel has been under considerable pressure, facing declining profits and market share over the past few years. Meanwhile, competitors like Nvidia and AMD have been on the rise, and Intel has lagged in the AI sector. Furthermore, the instability issues of the recent 13th/14th generation Core processors remain unresolved.