Intel to Cut 15,000 Jobs in Restructuring

Intel is implementing a $10 billion cost-reduction program, which includes slashing 15,000 jobs, approximately 15% of its workforce, in response to poor financial performance and competitive pressures from rivals like Nvidia and AMD. CEO Pat Gelsinger conveyed that the company's revenues and margins have not met expectations, particularly in light of the growing AI market, prompting a strategic pivot towards AI technology and chip manufacturing. Intel's recent financial results revealed a significant drop in net income by 85% year-on-year and a disappointing forecast for the next quarter. The company plans to offer enhanced retirement packages and voluntary departure programs to support the workforce reduction. Gelsinger emphasized that these changes are necessary to align Intel's cost structure with its new operating model and to ensure long-term competitiveness in the AI sector. Despite the challenges, Gelsinger expressed commitment to maintaining a culture of honesty, transparency, and respect throughout the transition.