SANTA CLARA — Intel has announced plans for mass layoffs that can end in the lack of 15,000 jobs worldwide, a restructuring that comes amid “disappointing” results for the enduring technology giant.
The layoff plans got here as Intel released its financial results for the corporate's second quarter, April through June.
“Our second quarter financial results were disappointing, although we achieved important product and process technology milestones,” said Intel CEO Pat Gelsinger. “The trends in the second half of the year are more challenging than we previously expected.”
Santa Clara-based Intel has decided to chop 15 percent of its workforce worldwide, which is able to end in the lack of a whopping 15,000 jobs.
“This is painful news for me,” Geisinger said in a blog post. “I know it will be even harder for you to read.”
As the technology industry has begun significant cuts starting in 2022, Intel has announced plans to chop 1,064 jobs within the Bay Area, affecting employees in Santa Clara and San Jose.
The tech giant has to this point failed to completely capitalize on the wave of artificial intelligence that’s sweeping virtually the complete technology industry.
“Our sales have not grown as expected,” Geisinger explained. “We are not yet fully benefiting from strong trends such as AI.”
In the second quarter, which led to June, Intel lost $1.61 billion on revenue of $12.83 billion.
The loss within the third quarter of 2018 stands in stark contrast to the profit in the identical three-month period last 12 months. The technology company's sales fell by 0.9 percent.
“Our costs are too high, our margins are too low,” Geisinger said. “We need to take bolder actions to address both, especially given our financial results and outlook for the second half of 2024, which are more difficult than previously expected.”
Intel's gloomy outlook for the corporate's financial prospects in the ultimate six months of 2024 nervous investors.
During regular trading, Intel shares fell 5.5 percent to shut at $29.05 per share. But in after-hours trading after the market closed on Thursday, Intel shares fell one other 19 percent, in line with the web site Yahoo Finance.
“This is an incredibly difficult day for Intel as we make some of the most significant changes in our company's history,” Geisinger said. “We must align our cost structure with our new operating model and fundamentally change the way we work.”
Intel also acknowledged that the corporate is just not flexible enough to maintain up with the competition and desires to take steps to turn into a more agile company.
“The complexity is too great, so we need to automate and simplify the processes,” said Geisinger. “Decisions take too long, so we need to reduce bureaucracy. And the system is too inefficient, so we need to speed up workflows.”
Intel pledged to attain $10 billion in cost savings from now through the tip of 2025. The company also announced it might introduce a voluntary retirement program to further reduce its workforce.
“I have no illusions that the road ahead will be easy. Neither should you,” Geisinger said. “This is a tough day for all of us, and there will be more tough days ahead. But as difficult as all of this is, we are making the changes necessary to build on our progress and usher in a new era of growth.”
Originally published:
image credit : www.mercurynews.com