Intel is laying off over 15,000 employees — following the news, the company's stock plummeted by 20%
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18:10, 06.08.2024
Intel is facing tough times, having lost $1.6 billion in the second quarter of 2024, which is several times more than $437 billion the company lost in the previous quarter.
To face this crisis, the company has developed a campaign on restructuring and reducing expenses, planning to reduce expenses by $10 billion in 2025.
The company is going to lay off over 15.000 employees and reduce recruiting by 15%, with 125 currently working in the company.
The revenues of the company in the second quarter are, however, only 1% smaller than last year – $12.8 billion. The sales of the company's products are however still profitable. The financial losses are more related to Intel’s investments into Foundry microchips – the company invests a lot into new plants and EUV lithography. This investment resulted in $7 billion losses in 2023 and $2.3 billion operational losses in 2024.
The news about the plan of expenses reduction through laying off employees was followed by Intel shares falling by 20%.
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