Intel, the leading semiconductor company, is set to lay off thousands of employees. The company announced the layoffs on Thursday, stating that it will reduce its workforce by 15%.
Thousands of Intel Employees at Risk
Intel is facing losses in its manufacturing business and is attempting to recover. As part of its recovery efforts, the company has announced several measures, including layoffs. This plan will affect around 17,500 employees, equivalent to 15% of its total workforce.
Anticipated Decrease in Intel’s Earnings
To stabilize its financial situation, Intel has also announced the suspension of dividends starting from the fourth quarter. The company expects its earnings in the third quarter to be lower than market estimates. Globally, spending on traditional data center semiconductors is decreasing. Intel, once the largest company in traditional semiconductors, is now lagging behind its competitors in the AI semiconductor market.
Layoffs to be Completed by Year-End
Intel currently employs over 100,000 people. As of June 29, the number of employees was 116,500, excluding the workforce of some subsidiary companies. Intel has stated that the proposed layoffs will be completed by the end of this year, meaning affected employees will lose their jobs within the next five months.
Reasons Behind Intel’s Decline
Intel is implementing these layoffs at a time when competing semiconductor companies like Nvidia and AMD are experiencing rapid growth. Nvidia, in particular, has surged ahead by capitalizing on AI technology, joining the ranks of the world’s largest companies alongside giants like Apple and Microsoft. Meanwhile, Intel, which has remained focused on traditional semiconductors, is now facing significant challenges.
