Intel Faces Turbulent Times with Major Layoffs Amidst Revenue Shortfall

Intel, the multi-decade frontrunner in the semiconductor industry, is facing a challenging period, as is evident by the announcement of massive job cuts and a troubling third-quarter revenue forecast well below analysts' expectations.
The tech giant revealed plans to lay off more than 15,000 employees, over 15% of its 110,000-member workforce, in an effort to streamline operations.

Meanwhile, predicted third-quarter revenue sales are set to range from $12.5 billion to $13.5 billion, falling short of the expected $14.38 billion.

CEO Pat Gelsinger, who's been striving to restore Intel's prestige, confessed in a memo to employees that the road ahead won't be easy. Gelsinger described the challenges as "some of the most consequential changes in our company's history." This is coming as Intel is battling to keep up with the booming artificial intelligence trend, losing clients to more adept rivals.

Alongside job cuts, Intel is also suspending its dividend payments to shareholders, a practice observed since 1992, until cash flows improve. Gelsinger insists, however, that the company is on the right track in the long run, with an optimistic outlook for Intel's vital manufacturing.
The company's share price plummeted over 18% in late trading following the announcement, marking a 42% slide for the year so far.

Intel's decision to implement job reductions is also aimed at expediting decision-making and reducing bureaucracy, according to Gelsinger.

- CyberBeat