Time: 2024-08-02
Intel recently revealed a bold move to reduce its costs , including slashing 15 % of its staff as part of a 0 billion plan . This decision comes as the company reported a revenue of 2.8 billion in the second quarter , down 1 % from the previous year , and an income loss of .6 billion . The company , once a dominant chipmaker , has faced challenges in keeping up with advancing technologies , like AI , and has fallen behind competitors like Nvidia in the market.
The tech giant 's heavy losses were seen in its chip - making business , particularly in the Foundry sector , which Intel heavily invested in for the AI era . Despite the cost - cutting plan , analysts believe that Intel 's move may not be enough to reshape its position in the evolving chip market . The company is also taking a risky bet on changing its business model by aiming to manufacture competitors ' processors , a strategy that could be costly and result in significant job cuts.
Intel 's CEO , Patrick P. Gelsinger , emphasized the need to align the company 's cost structure with its new operating model to address the challenges it faces . The company plans to cut 0 billion by 2025 and suspend its dividend starting in the fourth quarter of 2024 . Intel shares dropped significantly in after - hours trading following the announcement of the cost - cutting plan.
In response to the changing landscape of the chip market , Intel has outlined key priorities to streamline its operations and reduce costs . The company aims to drive operational efficiencies , simplify its portfolio , eliminate complexity , and reduce capital and other costs . Additionally , Intel plans to maintain growth investments in its IDM 2.0 strategy to focus on innovation and product leadership.
Despite the challenges ahead , Intel remains committed to its mission of creating world - changing technologies and improving the lives of people globally . The company acknowledges the tough decisions it has to make to ensure sustainable financial performance and growth . By focusing on execution , adapting to market realities , and operating as a more agile company , Intel aims to strengthen its ability to serve customers and drive performance in the long run.
As Intel embarks on this journey of transformation , it recognizes the importance of its role in shaping the future of technology . The company 's efforts to create technology and manufacturing capabilities that will reshape the world for years to come underscore its commitment to innovation and resilience in the face of challenges . Intel 's leadership is poised to navigate the company through these changes and drive growth for the future.
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