(DailyEmailNews.com) – In a dramatic change of fortune, Intel Corp. announced massive layoffs totaling 15,000 jobs, or 15% of its employees.
This decision follows a $1.6 billion loss and comes even though Intel received billions of dollars in support from thе Biden-Harris administration.
The job cuts are part of Intel’s strategic adjustments to boost competitiveness with tech giants like Nvidia and AMD.
CEO Pat Gelsinger explained the changes in a memo, stating the company’s plan to achieve $10 billion in savings by 2025.
“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career. My pledge to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months to come,” Gelsinger explained.
Alongsidе workforce reductions, Intel also announced it was suspending its stock dividend.
These measures followed a financial update for the second quarter, which reported a loss of $1.6 billion and a slight dip in revenue to $12.8 billion, failing to meet market expectations.
Despite these challenges, Intel has received considerable federal support through the CHIPS and Science Act of 2022.
It allocated up to $19.5 billion to enhance its U.S. manufacturing capabilities, a mov Joe Biden celebratеd as vital for boosting American technological leadership.
Following the announcement, Intel’s stock experienced a sharp decline, dropping more than 20% in after-hours trading.
This is not the only issue Intel is currently facing, as users have reported that the company’s latest processors are crashing and displaying blue screens.
This problem affects Intel’s 13th and 14th-generation chips, the latest iterations of an expansive CPU range.
In an effort to appease customers, Intel’s Thomas Hannaford released a statement saying, “We stand behind our products, and in the coming days we will be sharing more details on two-year extended warranty support for our boxed Intel Core 13th and 14th Gen desktop processors.”
The issue seen in these chips has been attributed to an “elevated operating voltage,” for which the company is working on a patch this August.
However, any damage the processors have already suffered due to the problem will likely not be fixed by said patch.
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