look news india
Retrenchment of employees- Multinational company Intel is going to lay off more than 15 lakh employees. The company gave this information in a memo sent to the employees on Thursday. The company has said that it will reduce its total workforce by 15 percent. Due to a sharp decline in revenue in the second quarter and the possibility of business not starting in the future, the company has planned to cut its expenses by $10 billion in 2025. The company will reduce its workforce to cut costs.
In a memo to employees,
“Our revenues have not grown as expected — and we haven’t yet taken full advantage of powerful trends like AI. Our costs are high, our margins are too low,” Intel CEO Pat Gelsinger wrote. “Confronting both of these challenges requires bold action.”
According to a report by The Verge, Intel currently has more than 125,000 employees. So if there is a 15 percent layoff, 19,000 employees could lose their jobs. Intel will cut billions of dollars in research and development and marketing costs every year by 2026. The company also aims to reduce capital expenditure by more than 20 percent this year. Not only this, the company will take steps to “pause non-essential work” and review “all active projects and equipment” to prevent excessive spending.
Revenue dropped in the second quarter
Intel's revenue fell 1 percent in the second quarter compared to the same period last year. The company has also suspended its shareholder dividend from the fourth quarter of 2024. The memo said that apart from layoffs, Intel will also start a “voluntary departure” program for employees in the company from next week. Employees who leave the company voluntarily will be given good compensation.