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Intel to cut over 15,000 jobs; CEO memo reveals details
Intel plans to lay off over 15,000 employees as part of a massive cost-cutting initiative aimed at saving $10 billion by 2025. Here's what the CEO memo reveals.
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Intel is set to lay off over 15,000 employees, amounting to a 15% reduction in its workforce
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Gelsinger shared the news in a memo sharing strategies to address high costs and low margins
Intel plans on laying off over 15,000 employees in a significant effort to save $10 billion by 2025. CEO Pat Gelsinger delivered the bad news in a memo, detailing the company's plan to reduce its workforce by 15% as part of a larger cost-cutting initiative as per the Economic Times.
In his memo, Gelsinger explained that layoffs are an important part of Intel's strategy to address high costs and low profit margins. He shared that the company's financial results and outlook for the second half of 2024 are more difficult than previously thought, necessitating these drastic measures.
Gelsinger added: “We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”
To assist employees affected by the layoffs, Intel will launch an enhanced retirement plan for eligible employees and a voluntary departure program next week. Gelsinger recognized the gravity of the situation, stating, “This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history.”
Despite the tough decisions, Gelsinger reaffirmed Intel's core values of honesty, transparency, and respect. He assured employees that the company would handle the process with integrity, saying that these decisions have tested him to the core, and this is the most difficult thing he has done in his career.
His commitment to everyone is that in the coming weeks and months, they will prioritize an honest, transparent, and respectful culture. He also shared how important it is to implement these changes in accordance with Intel's values, stating, "I believe that how we implement these changes is just as important as the changes themselves, and we will adhere to Intel values throughout this process."
Gelsinger warned employees of more difficult times ahead but stated that these changes are necessary for Intel's long-term growth. He expressed hope that the restructuring would pave the way for the company's next chapter, saying that as difficult as all of this is, they are making the changes necessary to build on the progress and usher in a new era of growth.
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