A major tech company has just announced that it will lay off thousands of workers, amounting to more than 15% of its workforce.
The decision comes amid a recent spate of layoffs in the tech industry, which continues to struggle to retain workers despite vaunting advancements in AI and other technologies.
Tech Industry Struggles
The tech industry as a whole has been laying off workers at concerning rates in recent years.
This year alone, according to numbers from Layoffs.fyi, the tech industry has already laid off nearly 100,000 workers.
AI-Driven Growth
AI has been the buzzword in tech circles, as companies have rushed to introduce AI-driven features to their software and devices.
Companies that have been slow to adopt AI features may have been perceived to have been falling behind their counterparts.
Intel Latest Company Laying Off Workers
Even among the recent significant layoffs made by tech companies in recent years, Intel’s layoffs stand out.
The company is reportedly laying off as much as 19,000 workers, which represents over 15% of their total workforce.
Part of Cost-Reductions
The layoffs are apparently part of the company’s cost-reduction initiative.
They are looking to make savings of around $10 billion, mostly in their marketing and research and development wings.
CEO Remorse
The CEO of Intel, Pat Gelsinger, has attempted to express his empathy for his worried staff.
He says, in a memo announcing the layoffs: “This is painful news for me to share. I know it will be even more difficult for you to read.”
Substantial Losses
The company has suffered huge losses in the past 2 quarters, according to their quarterly reports.
In Q1, they suffered losses of $437 million, but exceeded this three-fold in Q2, when they reported losses of $1.6 billion overall.
Foundry Flounder
The losses to the company were mostly a result of struggles with their chip making division, Foundry.
The Intel arm reported a staggering loss of $2.8 billion.
Market Troubles
Inevitably, the losses have not gone unnoticed by investors, and the stock value has reflected this shift in perception.
It is now, according to CNBC, the worst performing stock in the S&P 500.
Partners Moving On
Microsoft and Apple, previously customers of Intel, are now beginning to shift away from them.
Microsoft’s latest products, including the Surface, will not contain Intel chips due to battery life concerns.
