Intel, the semiconductor giant, has been undergoing significant workforce reductions as part of its cost-cutting measures.
Over the past two years, the company has seen its global workforce shrink by a staggering 23,000 positions, far exceeding initial layoff projections.
Intel Layoffs: Background, Financial Struggles, CEO Departure
Intel’s layoffs began in earnest in 2022, with the company announcing sweeping cost-reduction measures.
The company’s financial struggles have been exacerbated by declining revenue, shrinking market share, and challenges in executing its turnaround strategy.
In 2024, Intel generated $53.1 billion in revenue, down from $54.2 billion the previous year, and its stock price plummeted 60% over the course of the year.
The latest round of layoffs includes plans to cut 58 more positions at Intel’s Folsom, California, campus by the end of March.
This adds to the more than 1,000 jobs lost at the site since January 2023.
The Folsom layoffs are part of Intel’s broader effort to trim costs by $10 billion in 2025.
Intel’s declining workforce has highlighted its struggles with productivity. In 2020, the company generated more than $700,000 in revenue per employee.
By 2023, that figure had dropped to under $440,000. Despite the layoffs and cost-cutting measures, Intel’s future remains uncertain.
The company is still searching for a new CEO following the departure of Pat Gelsinger in December.
Pat’s departure has added to the uncertainty surrounding Intel’s future direction and its ability to regain its competitive edge in the semiconductor industry.
Employee Impact and Restructuring Efforts
The layoffs have had a significant impact on Intel’s employees.
The company has slashed employee bonuses amid financial struggles, and while it has continued to provide some financial support, particularly in Israel, the payouts have been significantly lower than in past years.
Intel has spent $900 million on restructuring in 2024, a sign of the heavy costs associated with its turnaround efforts.
The company has also announced plans to sell its Folsom real estate and lease back a portion of the space, signaling further downsizing.
Despite the layoffs and cost-cutting measures, Intel’s future remains uncertain.
The company’s latest earnings report beat analysts’ low expectations, but its revenue forecast for early 2025 fell short, underscoring the ongoing challenges it faces.
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