Wednesday, July 31st 2024
Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion
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
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.
68 Comments on Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion
12 months x 5000$ x 10,000 people is 600 mln.Agreed. It's always better to pay salaries than to buy super expensive private yachts and jets. :banghead:
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.
There is a real danger that even some useful and productive people will end up in that number.
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.
www.techpowerup.com/322317/amd-hits-highest-ever-x86-cpu-market-share-in-q1-2024-across-desktop-and-server