Intel announces second quarter 2024 financial results, announces deficit of over 240 billion yen and cuts about 15,000 jobs
Intel announced that it will cut about 15,000 jobs, equivalent to more than 15% of its total workforce, on August 1, 2024. Intel plans to cut costs by $10 billion (about 1.5 trillion yen) in 2025, and this staff reduction is part of this plan.
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Intel is laying off over 15,000 employees and will stop 'non-essential work' - The Verge
Intel reported its second quarter 2024 results on August 1, 2024. Although sales in the second quarter of 2024 were $12.8 billion (approximately 1.9 trillion yen), down 1% from the same period last year, net income was reported to be in the red by $1.61 billion (approximately 240 billion yen).
'Our second quarter 2024 financial performance was disappointing despite achieving key product and process technology milestones. Our revenue did not grow as expected as we have not fully benefited from powerful trends like AI,' Intel CEO Pat Gelsinger said.
Intel, whose performance is sluggish, plans to cut costs by $10 billion in 2025, and as part of that, announced that it would lay off more than 15,000 employees on August 1, 2024. Intel also announced that it will cut research and development and marketing spending by billions of dollars (several hundred billion yen) each year until 2026, and will cut capital expenditures by more than 20% in 2024. Intel said, 'We will reorganize our organization to stop non-essential work, review all active projects and development equipment, and review spending.'
It has previously been reported that Intel plans to implement job cuts to reduce costs.
Intel may cut thousands of jobs to raise funds to recover sagging revenue and market share - GIGAZINE
'We are taking aggressive steps to improve Intel's overall margins and strengthen our balance sheet by implementing spending reductions,' said Intel CFO David Zinsner. 'We expect these actions will significantly improve our liquidity and reduce our debt balance while allowing us to make appropriate investments to enhance long-term value for our shareholders.'
Gelsinger also said Intel will offer enhanced severance packages to eligible employees and allow employees to apply for voluntary retirement. 'This is a difficult day for all of us, and there will be difficult days ahead, but we are building on our progress and making the changes necessary to usher in a new era of growth,' he said.
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