Intel announced it would layoff more than 15% of its staff, or 15,000 employees, in a memo to employees on Thursday. The massive headcount is part of a large plan to reduce spending by $10 billion in 2025, following a dismal second quarter earnings report and outlook.
“Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI,” said CEO Pat Gelsinger in a memo to employees. “Our costs are too high, our margins are too low. We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”
As Gelsinger describes, Intel has struggled to capitalize on the AI boom in the same way other hardware companies, such as Nvidia, have. Intel led the tech industry’s revolution around CPU chips roughly 25 years ago, but has been slow to embrace newer waves of computing such as smartphones and AI. Gelsinger says annual revenues at Intel fell $24 billion between 2020 and 2023, despite its workforce growing 10% in the same time frame. That’s a stark contract to other chipmakers during the AI boom, who have seen revenues and valuations soar to astronomical heights.
Intel reported a 1% decline in revenues for the second quarter compared to the same period last year. The company attributed the loss to gross margin headwinds related to its AI PC products. The company is also suspending its shareholder dividend starting in the fourth quarter of 2024, and anticipates “more challenging” second-half trends than it previously expected.
Beyond the layoffs, Intel will broadly offer applications for a “voluntary departure” program next week to employees at the company, according to the memo. The company is also announcing a companywide enhanced retirement offering for eligible employees.
TechCrunch Disrupt 2024 will be in San Francisco on October 28–30, and we’re already excited! Disrupt brings innovation for every stage of your startup journey, and we could not bring you this…
Featured Article
A comprehensive list of 2024 tech layoffs
The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the…
Intel announced it would layoff more than 15% of its staff, or 15,000 employees, in a memo to employees on Thursday. The massive headcount is part of a large plan…
Following the recent lawsuit filed by the Recording Industry Association of America (RIAA) against music generation startups Udio and Suno, Suno admitted in a court filing on Thursday that it did, in…
In spite of a drop for the quarter, iPhone remained Apple’s most important category by a wide margin.
Molly Alter wears a lot of hats. She’s a mocumentary filmmaker working on a project about an alternate reality where charades is big business. She’s a caesar salad connoisseur and…
Microsoft has a long and tangled history with OpenAI, having invested a reported $13 billion in the ChatGPT maker as part of a long-term partnership. As part of the deal,…
The San Jose-based startup raised $60 million in a round that values it lower than the $500 million valuation it garnered in its most recent round, according to multiple sources.
Self-driving technology company Aurora Innovation is looking to raise hundreds of millions in additional capital as it races toward a driverless commercial launch by the end of 2024. Aurora is…
X (formerly Twitter) can no longer be accessed in the Mac App Store, suggesting that it has been officially delisted. Searches for both “Twitter” and “X” on Apple’s platform no…
Google Thursday said that it is introducing new Gemini-powered features for Chrome’s desktop version, including Lens for desktop, tab compare for shopping assistance, and natural language integration for search history.…
When Xiaoyin Qu was growing up in China, she was obsessed with learning how to build paper airplanes that could do flips in the air. Her parents, though, didn’t have…
While the company was awarded a massive, $4.2 billion contract to accelerate Starliner development in 2014, it was structured as a “fixed-price” model.
Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Summer road…
Google’s new features include Gemini in BigQuery and Looker to help users with data engineering and analysis.
Rad Power Bikes, the Seattle-based e-bike startup that has raised more than $300 million from investors, went through another round of layoffs in July, TechCrunch has exclusively learned. This is…
Five years ago, as robotaxis and self-driving truck startups were still raking in millions in venture capital, Anthony Levandowski turned to off-road autonomy. Now, that decision — which brought the…
Commercial space station company Vast is building a private microgravity research lab as part of its wider Haven-1 station plans. The module is set to launch no earlier than the…
Google Cloud is giving Y Combinator startups access to a dedicated, subsidized cluster of Nvidia graphics processing units and Google tensor processing units to build AI models. It’s part of…
Open source compliance and security platform FOSSA has acquired developer community platform StackShare, the company confirmed to TechCrunch. StackShare is one of the more popular platforms for developers to discuss,…
The European Union’s risk-based regulation for applications of artificial intelligence has come into force starting from today.
The company also said it has received regulatory clearance to start Phase 2 clinical trials for a new drug in the U.S. later this year.
The European Commission (EC) has given the go-ahead to HPE’s planned megabucks acquisition of Juniper Networks.
Meta, which develops one of the biggest foundational open source large language models, Llama, believes it will need significantly more computing power to train models in the future. Mark Zuckerberg…
Axle Energy is a B2B, back-end infrastructure business focused on connecting flexible assets, such as electric vehicles and home batteries, to energy markets that aren’t otherwise available for consumers to…
OpenAI CEO Sam Altman says that OpenAI is working with the U.S. AI Safety Institute, a federal government body that aims to assess and address risks in AI platforms, on…
WhatsApp’s massive 500 million users in India have supercharged Meta’s AI ambitions. Meta CFO Susan Li said Wednesday that India is the largest market in terms of Meta AI usage,…
While venture capitalists and the rest of the technorati are off on holiday or attending the Paris Olympics, the U.S. Securities and Exchange Commission and its staff attorneys are keeping…
