Intel Plans To Cut Over 15 Pct Jobs

SAN JOSE (California), Aug 2 (Bernama-dpa) -- US chip-maker Intel on Thursday announced that it is planning on reducing its workforce by 15 per cent as part of a cost-cutting programme worth billions of dollars, reported German news agency (dpa).

Intel said the majority of the layoffs, expected to exceed 18,000, were set to be completed by the end of 2024. The move is part of a new US$10 billion cost savings plan amid losses for the chipmaker.

From the fourth quarter onwards, Intel also intends to stop paying a dividend for the time being, the US company announced after the close of the US stock market.

In the second quarter, Intel posted a loss of just over US$1.6 billion compared to a profit of US$1.48 billion a year earlier. 

Turnover fell by 1 per cent year-on-year to US$12.8 billion, falling short of analysts' expectations. 

Intel once dominated the chip industry, but then fell behind. Currently, competitor Nvidia is the benchmark in the chip industry. 

Intel chief executive officer Pat Gelsinger said he wants to turn things around with new production processes for more efficient chips, but still has a lot of work ahead of him. 

"Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones," he said.

"Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation."

-- BERNAMA-dpa