Intel plans to slash over 15,000 jobs, about 15% of its workforce, as part of a turnaround strategy to save $10 billion by 2025. CEO Patrick Gelsinger expressed the difficulty of the decision in a letter to employees.
The company also intends to suspend its quarterly dividend in the fourth quarter and implement other cost-cutting measures. This move comes as Intel faces challenges from competitors in the AI chip market and chip manufacturing.
Gelsinger aims to revitalize Intel after taking over as CEO in 2021, focusing on lobbying for federal subsidies and addressing manufacturing issues. Unlike rivals, Intel both designs and manufactures chips.
Intel's stock dropped over 17% in after-hours trading following the announcement of the restructuring plan, reflecting market concerns about the company's performance and competition in the chip industry.
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