Santa Clara-Based Intel to Lay Off Nearly 18,000 Employees Amid $10 Billion Cost-Cutting Measures

Aug 1, 2024, 08:32 PM

Intel Corp., based in Santa Clara, is set to lay off more than 15% of its workforce, amounting to nearly 18,000 employees, as part of a $10 billion cost-reduction plan. The layoffs come amid disappointing second-quarter financial results, where Intel reported revenue of $12.83 billion, missing the estimated $12.94 billion, and adjusted earnings per share of $0.02, below the expected $0.10. The company also announced it will suspend dividend payments starting in the fourth quarter of 2024. Intel's stock plummeted nearly 20% in after-hours trading following the announcements. The layoffs are part of a broader strategy to address financial losses, improve market competitiveness, and realign the company's operations. CEO Pat Gelsinger stated that these measures are necessary to align Intel's cost structure with its new operating model and to compete more effectively with rivals such as Nvidia and AMD.