The AI chip company seeks to save $10 billion after significant losses in the last quarter.
Intel, the giant in artificial intelligence chip manufacturing, has announced the layoff of 15% of its workforce, which amounts to approximately 15,000 jobs, as part of a $10 billion cost-saving plan. This drastic measure comes after the company reported a loss of $1.6 billion in the last quarter and with the goal of competing more effectively with its rivals NVIDIA and AMD.
Despite receiving $8.5 billion from the U.S. CHIPS Act to advance its AI chip manufacturing and development projects, Intel has experienced major losses in its chip manufacturing business as it has continued to invest in new factories. These financial troubles have led the company to undergo a significant restructuring.
In addition to the layoffs, Intel plans to “halt non-essential work” and “fundamentally change” its mode of operation. The company has stated that it has not been able to fully capitalize on powerful trends like AI, which means that “revenue has not grown as expected.”
The decision to cut jobs and restructure its operations highlights the challenges that Intel faces in the competitive AI chip market and its determination to get its business back on track.