|
Technology
|
Cost Brake: Intel's Job Cuts and Challenges
2024-08-02 05:50:09
Business
Technology
Artificial Intelligence

Cost Brake: Intel's Job Cuts and Challenges

Intel, once a chip industry leader, is cutting 15% of its jobs to save over $10 billion. The CEO aims to position Intel as a contract manufacturer and plans to build a €30 billion plant.

Intel lost ground in smartphones and faces tough competition in the AI chip system business. Sales have fallen, and the company expects a challenging second half of the year.

Additionally, Intel is struggling to keep up with competitors like Nvidia and AMD in AI. The company has adjusted its investment plans and is focusing on AI chips and for-hire manufacturing.

In an effort to boost its semiconductor production, Intel will receive $19.5 billion in grants and loans from the Biden administration. Despite these efforts, there are doubts about whether Intel can effectively execute its plan and maintain its competitiveness.

Related news on that topic:

Intel Faces Challenges as Stock Plunges on Q2 Miss

Intel reported a disappointing Q2 with an 85% earnings crash and a 1% decline in sales. The company announced $10 billion in cuts, including a 15% reduction in its workforce and the suspension of its dividend. The weak Q3 forecast and the challenges of competing with rivals like AMD and Qualcomm's Snapdragon X Elite PC chip contributed to the stock plunging 19% after-hours and 5.5% in the regular session. Intel's CEO, Pat Gelsinger, plans to focus on deleveraging and capital investments over shareholder dividends. The company aims to regain market share by building AI chips and third-party foundry businesses. However, Intel's manufacturing upgrade and build-out program have put a strain on profits. Despite the difficulties, Gelsinger remains confident in Intel's ability to catch up with and surpass its competitors in chip manufacturing and AI technologies.

Intel Announces Massive Job Cuts as it Struggles to Keep Pace ... with Competitors

Intel, once the market leader in chip manufacturing, is facing challenges as it falls behind competitors like Nvidia and AMD in the AI chip market. To address these issues, the company is undergoing its largest restructuring in 40 years, which includes cutting 15% of its workforce and reducing capital expenditure by $5 billion in 2025. Intel's quarterly earnings have missed estimates, leading to a 21% stock crash. The company plans to focus on improving manufacturing, streamlining products, and attracting external customers. Despite the setbacks, CEO Pat Gelsinger is committed to regaining a leadership position in the industry. However, the company's revenue forecast remains below expectations. Intel's struggles can be attributed to declining demand for traditional server processors and losing its Huawei license. It is also facing competition from rivals like Nvidia and AMD, who are thriving in the AI chip market. Intel's new structure aims to address high costs, low margins, and missed opportunities in the AI boom. The company is also facing challenges in its plan to build a chip factory in Magdeburg, Germany. Despite these difficulties, Intel remains optimistic about the future and is determined to maintain a sustainable semiconductor supply chain and continue its investments in research and development.

Read 16 more recent news on this topic

The press radar on this topic:

heise online
2. August 2024 um 04:43

Cost brake: Intel cuts 15 percent of jobs | heise online

Economy
Technology
Finance
Politics
Intel, once the chip industry leader, is cutting 15% of its jobs to save over $10 billion. CEO Gelsinger wants to position Intel as a contract manufacturer for other chip developers and plans to build a €30 billion plant in Magdeburg. Intel lost the battle for a place in smartphones and had to watch as Apple switched its Macs to its own Arm chips. In addition, Intel is far behind Nvidia in the lucrative AI chip system business. Intel has adjusted its investment plans to the expected market dev..
heise online
2. August 2024 um 04:43

Cost Brake: Intel Cuts 15 Percent of Jobs | heise online

Economy
Technology
Finance
Intel, the struggling semiconductor pioneer, is cutting 15% of its jobs to reduce costs. CEO Gelsinger wants to save over $10 billion. Intel wants to act more strongly as a contract manufacturer for other chip developers and plans to build a plant worth 30 billion euros in Magdeburg. In the last quarter, Intel recorded a loss of $1.6 billion. Gelsinger emphasizes that Intel's cost structure is not competitive and that revenue in 2022 was significantly lower than in 2020, even though the number..
Al Jazeera
2. August 2024 um 02:24

Intel to slash 15,000 jobs amid struggles to keep up with Nvidia and AMD

Economy
Technology
Finance
Intel, a major US chipmaker, will slash over 15,000 jobs, 15% of its workforce, to cut costs by $10bn by 2025. The company reported a $1.6bn Q2 loss on $12.8bn revenue and forecast $12.5bn-$13.5bn for Q3, missing expectations, as it struggles against Nvidia and AMD in AI. Intel has halted an Israel factory project and is focusing on AI chips and for-hire manufacturing, after losing ground to TSMC. The Biden administration will provide Intel with $19.5bn in grants and loans to build semiconductor..
Big Tech - South China Morning Post
2. August 2024 um 04:20

Intel to cut 15% jobs, suspend dividend in turnaround push; shares plummet | South China Morning Post

Economy
Technology
Finance
Intel to cut 15% jobs, suspend dividend; shares plummet. Turnaround plan, $10B cost cuts. PC chips selling better, data centre decline. Lags in AI chips. Lower consumer, enterprise spending; capital expenses cut 17% in 2025. CEO Gelsinger's 3+ years, Intel's $11.29B cash, $32B liabilities.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact