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
Intel is also plummeting in the high margin server market. AMD has over 33% server CPU share up from 2% before Zen and Nvidia is dominating the GPU server market. And much to both AMD and Intel’s dismay, the ratio of server CPUs to server GPUs is widening in the GPUs favor.
Intel has no roadmap for success except for its fabs. This begs the question: will they pivot to being a fab only company like TSMC?
Willing to bet the median salary of those 10,000 jobs is about $75K, so they're either closing down some VERY expensive assets or they're firing several people who have 7-digit salaries.
Having said that I think there's some creative accounting going on here in their 10 billion dollar figure. Two of my family members are CPAs that rose to upper management in their careers and they had a joke to tell about accounting. When asked what 2+2 equals they would reply, "what do you want it to equal?"
Intel fires 10 000.
AMD has 26 000 employees in total.
Intel has 124 800 employees (before the layoffs)
AMD and others caught up and surpassed them.
Complacency... Rough on all the people being cut.
Intel isn't the only company going through this. (Stellantis announced more this morning as well)
These companies have tremendous amounts of fluff. Depending on division it’s even worse. 3 layers of middle management kind of shit.
More on topic, outside of the "AI" mania boom, I don't think a lot of tech companies are doing very well either, including of course Intel. By the time Intel could even get a product out for "AI", the demand probably will have gone anyway. Boat missed.
I doubt space rental or maintenance covers even 1% of that figure, but maybe if they're selling off property and expensive ASML photolithography assets they own outright and have a buyer lined up?
They are going to have to get their crap together and come back with something good, and when they do we all win.
>that will be 16.86 million dollars plus tip
If the government was something more than a charity program for corporations, they might have made some contingencies on that money, i.e. no layoffs for the next three years....but I guess putting rules on that financial support (like literally every citizen on government assistance) for a corporation would be "anti-free market communist radicalism [insert other vaguely Marxist terminology that the accuser can never define]"