Intel CEO Pat Gelsinger announced that the company is implementing job cuts to save money and reduce expenses. In a memo to all employees, he disclosed that Intel aims to achieve $10 billion in savings by 2025, leading to a reduction of 15% of the total workforce. Next week, Intel will introduce an enhanced retirement package for eligible employees and offer a voluntary departure application program.
He stated, “Sharing this news is painful for me, and I understand it will be even more difficult for you to hear. This is an exceptionally challenging day for Intel, as we are implementing some of the most significant changes in our company’s history.”
He emphasized that Intel’s costs are too high and its margins are too low, stating, “We need to take more decisive actions to address these issues, especially in light of our financial results and the outlook for the second half of 2024, which are more challenging than we had anticipated.”
Addressing the employees, Pat Gelsinger stated, “These decisions have deeply challenged me, making this the hardest task of my career. I promise that we will prioritize a culture of honesty, transparency, and respect in the upcoming weeks and months.”
“We will adhere to Intel values throughout this process,” he continued, “because I believe that how we implement these changes is just as important as the changes themselves.”
He told the staff that there will be harder times ahead, adding, “But as challenging as all of this is, we are making the adjustments required to build on our progress and usher in a new era of growth.”
