Intel may lay off 18 thousand employees, preparing to cut expenses by $20 billion
Layoff: Intel plans to cut its expenses by about $20 billion this year. The company has suffered a loss of about $1.6 billion in the recent quarter.
American chip manufacturer Intel announced on Thursday that it will cut 15 percent of its total staff to streamline its operations. According to reports, Intel currently employs one lakh twenty-four thousand employees. In such a situation, according to the company's announcement, about 18 thousand employees can be laid off.
Intel plans to cut its expenses by about $20 billion this year. The company has suffered a loss of about $1.6 billion in the recent quarter. The company's CEO Pat Gelsinger has issued a statement saying 'Our second quarter performance was very poor, although we have achieved milestones in key products and technology. The trends of the second half are much more challenging than our previous expectations.' Chief Financial Officer David Zinsner said, 'By reducing our expenses, we are taking proactive steps to improve our profitability and strengthen our balance sheet.'
Intel, troubled by losses, announced in June that it was also halting the expansion of a major factory project in Israel. The company was planning to invest an additional $15 billion for a chip plant in Israel. Intel faces tough challenges from rival companies Nvidia, AMD, and Qualcomm. For decades, Intel has dominated the market for chips, which are used in everything from laptops to data centers, but in recent years companies like Nvidia have moved ahead in the field of AI.
