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3d ago

Intel Cuts 24,000 Jobs and Pauses European, Ohio Factory Expansions

It forecasts a 24-cent per share Q3 loss following a shift to a demand-driven investment strategy.

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A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/ File Photo
Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/ File Photo
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Overview

  • Intel will shrink its workforce from about 99,500 at end-2024 to 75,000 by year-end, booking $1.9 billion in Q2 restructuring charges from layoffs.
  • The company has halted planned fabs in Germany and Poland and further slowed construction of its Ohio plant, committing to build new capacity only with confirmed customer orders.
  • Second-quarter results showed flat revenue of $12.9 billion and a $2.9 billion net loss, and Intel expects a steeper 24-cent per share loss in Q3 on roughly $13.1 billion in revenue.
  • CEO Lip-Bu Tan has abandoned the build-ahead model for “no more blank checks,” prioritizing cost discipline and streamlined management layers.
  • Intel warned that its foundry business, including its next-generation 14A process, could be suspended if it fails to secure significant external customers.