Wednesday, July 31st 2024

Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion

Jul 31st, 2024 02:45 Discuss (68 Comments)

According to sources close to Bloomberg, Intel plans to cut 10,000 jobs from its global workforce. The news comes amid heavy pressure on the semiconductor giant, which has been on a steady decline over the years, while other industry rivals like AMD and NVIDIA have been rising and taking market share in various areas from Intel. It is reported that Intel currently has 110,000 employees globally, and reducing the workforce by 10,000 would net Intel around 100,000 global employees left. These figures exclude employees from spun-out units like Altera FPGA company, which is under Intel's ownership. Intel's aim to reduce its workforce is expected to come with a significant cost benefit to the company, with projected savings of $10 billion by 2025.

The news isn't yet official, but it is expected to see the light of the day as soon as this week. As Intel's CEO Pat Gelsinger invests heavily into the fab construction and development of next-generation products, there have been a few notes that Intel would have to overcome some challenges shortly to reach its long-term goals like more advanced silicon manufacturing facilities and new products for AI/HPC and client sector. One of those short-term measures is reducing the workforce to cut down expenses. Intel has reduced its workforce before. In 2022, the company announced reduced spending in non-critical areas and reducing the workforce, and in 2023, cut the workforce by 5% to 124,800 employees last year, only to be left with 110,000 employees in 2024.

Source: Bloomberg

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68 Comments on Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion

Chaitanya

When will CEO's head also roll? That will also save massive amounts of money.

Eskimonster

Greedy shareholders is not a new trend. No surprises here.

LittleBro

Makes sense. AMD managed to catch up with Intel and even outperform it with fraction of Intel's human and financial resources.

Robin Seina

I highly doubt they will find 10 000 dead bodies in marketing department and middle management. And cutting off employees on manufacturing and R&D side is always a bad idea.

nguyen

10 000 jobs are being replaced by AI

usiname

The taxpayers should be proud

ARF

with projected savings of $10 billion by 2025

How much do they pay these employees?
12 months x 5000$ x 10,000 people is 600 mln.

ChaitanyaWhen will CEO's head also roll? That will also save massive amounts of money.

Agreed. It's always better to pay salaries than to buy super expensive private yachts and jets. :banghead:

LabRat 891

I read "save $10billion" from Intel, and think of the starting figure for a settlement on eventual 13th-14th gen class-action.

TheDeeGee

"Thanks papa, yeah"

#10

Noyand

ChaitanyaWhen will CEO's head also roll? That will also save massive amounts of money.

They will immediately replace him with a new guy anyway. I don't think that a single company in the world would have the courage to run without a CEO

#11

Quicks

NoyandThey will immediately replace him with a new guy anyway. I don't think that a single company in the world would have the courage to run without a CEO

Maybe that should change, AI can do the job better.

#12

londiste

There are lot of jokes in comments because Intel. However, one of Intel's problems that rightfully got a lot of criticism was how it seemed to try and do everything semiconductor under the sun, basically bloated. They have now closed, sold or otherwise spun off a lot of parts and are more and more focused on CPUs and GPUs plus supporting developments. Unfortunately with that type of focus and structural changes towards that some people no longer have a place. Not saying I like people losing their jobs but it does make logical sense.

#13

Why_Me

They should probably learn to code.

#14

Wirko

londisteThere are lot of jokes in comments because Intel. However, one of Intel's problems that rightfully got a lot of criticism was how it seemed to try and do everything semiconductor under the sun, basically bloated. They have now closed, sold or otherwise spun off a lot of parts and are more and more focused on CPUs and GPUs plus supporting developments. Unfortunately with that type of focus and structural changes towards that some people no longer have a place. Not saying I like people losing their jobs but it does make logical sense.

Yes. But apparently they aren't hiring (much), just reducing the workforce. Sharply. What about IFS? Are they starting to realise it's not going to be competitive?

#15

R0H1T

londisteThere are lot of jokes in comments because Intel. However, one of Intel's problems that rightfully got a lot of criticism was how it seemed to try and do everything semiconductor under the sun, basically bloated. They have now closed, sold or otherwise spun off a lot of parts and are more and more focused on CPUs and GPUs plus supporting developments. Unfortunately with that type of focus and structural changes towards that some people no longer have a place. Not saying I like people losing their jobs but it does make logical sense.

From reddit ~

This on top of a large number of "voluntary" layoffs (edit: in their server group) a month or two ago. And of course on top of the huge number from the last year-ish.

So apparently the cuts are more severe & I'd argue less focused/thought out.

#16

Wirko

QuicksMaybe that should change, AI can do the job better.

Judging just by the public statements generated by said CEOs, that's certainly true.

"AI is fueling a fundamental shift, driving interconnectivity between technology and humanity," Gelsinger said. "At the center of this transition is silicon. Whether it is your PC, the checkout at your local retail store or your personal automobile, semiconductors are essential to maintaining and enabling our modern economies and lifestyles. At CES 2024, we will explore how these chips – amplified by innovative and open software – are enabling AI capabilities for consumers and business alike, creating a better, more sustainable and inclusive future for all." - www.prnewswire.com/news-releases/intel-ceo-pat-gelsinger-to-highlight-the-impact-of-bringing-ai-to-everyone-everywhere-during-ces-2024-keynote-302009148.html

I remember a program that could compose texts of this kind on my 8-bit computer in the 80s, not sure if it was even called AI.

#17

Daven

And so it begins…

#18

Kn0xxPT

This is what it means underestimate the competition, and not giving any respect to custumers ...
AMD beated a king...
Intel became a Nokia ... it was good when they were good ....
It will take years to Intel catch up . most of the people that knew how to make CPU's at Intel have left ... now they need to "form" new CPU engineers.
Exploits on Intel CPU's hit them more than expected, quality degraded overtime, IPC R&D almost none existent, they didnt inovate much has AMD did.

#19

Broken Processor

Last 2 generations of CPU are currently eating themselves but sure lay of some staff that's bound to improve there ability to make products.

#20

BoggledBeagle

I understand, that after very careful analyzes a company can find that some employees are redundant or not very productive. But this outcome can hardly sum up to a round number of 10 thousands.

There is a real danger that even some useful and productive people will end up in that number.

#21

Broken ProcessorLast 2 generations of CPU are currently eating themselves but sure lay of some staff that's bound to improve there ability to make products.

AMD proved that you can make a good product (and even go from an atrocious one to a great one) with far fewer people. But Intel is cutting the workforce before addressing anything about the culture of the company which lead to their string of failures over the past years.

So with these cuts they'll be going from a fat company in disarray, to a less fat company in disarray, with enough money to spare to cover a few holes and pay some golden parachutes.

P.S. Saving $10bn on 10.000 jobs over presumably 1 year suggests the average (salary and everything else) cost of an employee is $1m.

#22

Arctucas

LabRat 891I read "save $10billion" from Intel, and think of the starting figure for a settlement on eventual 13th-14th gen class-action.

^This^

#23

PLAfiller

Kn0xxPTThis is what it means underestimate the competition, and not giving any respect to custumers ...
AMD beated a king...
Intel became a Nokia ... it was good when they were good ....

I like show just as much as the next guy, but that ain't true. How has Intel became like Nokia? Still holding ~80 eightish percent or so from business market and about the same from consumer market....I mean that's one SLOOOW giant killing we have here. Don't get me wrong, I am not taking sides, but it's like saying that Boeing has existed making planes and Airbus is the only player manufacturing passenger airplanes...

#24

funra

Intel is going under, as evidenced by buggy 13Gen and 14Gen CPUs... Welcome ARM!

#25

R0H1T

80% of what? Pretty sure AMD's surpassed 20% of server shipments earlier this year, the x86 server marketshare itself is going down with the likes of ARM based Graviton, Nvidia's GH et al eating into that. Your numbers are about 2 years old.

PLAfillerDon't get me wrong, I am not taking sides, but it's like saying that Boeing has existed making planes and Airbus is the only player manufacturing passenger airplanes...

Boeing is propped up a lot by their "military" contracts!
www.techpowerup.com/322317/amd-hits-highest-ever-x86-cpu-market-share-in-q1-2024-across-desktop-and-server

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Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion

68 Comments on Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion

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