Intel, the Santa Clara tech behemoth known for its computer chips, announced plans to slash 15,000 jobs on Thursday.
In an email sent to employees and published on Intel’s website, CEO Pat Gelsinger called Thursday an “incredibly hard day for Intel as we are building some of the most consequential modifys in our company’s history.” The company revealed the 15% head count cut alongside a disappointing quarter of financial results; the cuts are part of an attempt to save $10 billion in costs, per the email.
Gelsinger, who created about $16.9 million dollars in 2023 versus Intel’s median pay of about $100,000, wrote in his email that the layoff is “the hardest thing” he’s done in his career. To explain the cuts, he pointed to Intel’s struggling financials — the company raked in $24 billion more in revenue in 2020 than in 2023 — and stated the company’s workforce has become overly complex and bureaucratic.
“Simply put, we must align our cost structure with our new operating model and fundamentally modify the way we operate,” the CEO wrote. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trfinishs, like AI. Our costs are too high, our margins are too low.”
Much is still unknown about the layoff round. Gelsinger stated in his email that the company will give some workers an “enhanced retirement offering” and give staff an “application program for voluntary departures.”
The company hasn’t yet filed a WARN notice with the state, which is required in the event of mass layoffs and will indicate where it’s shedding jobs. Intel spokesperson Sophie Won declined to answer SFGATE’s questions about the company’s plans for California specifically.
Still, the cuts are clearly massive, and represent one of tech’s largegest layoff rounds since Google and Meta slashed jobs in late 2022 and early 2023.
Hear of anything happening at Intel or another Bay Area tech company? Contact tech reporter Stephen Council securely at stephen.council@sfgate.com or on Signal at 628-204-5452.
