Intel’s Desperate Attempt to Stay Relevant: 15,000 Employees Sacked, $10 Billion in Cuts
In a move that reeks of desperation, Intel has announced it will gut its workforce by a whopping 15% – 15,000 employees – in a brazen attempt to salvage its dwindling fortunes. The tech giant’s latest memo to employees is a thinly veiled admission of its failure to adapt to the rapidly changing landscape of the industry.
"Intel’s revenues have flatlined, and we’re still stuck in the Stone Age of computing," said CEO Pat Gelsinger in a memo that’s more likely to induce panic than inspire confidence. "Our costs are too high, our margins are too low. We’re just not good enough, and we need to make drastic changes to stay afloat."
The truth is, Intel has been woefully behind the curve when it comes to embracing the AI revolution. While Nvidia and other chipmakers have been raking in the dough, Intel has been stuck in neutral, watching its revenues plummet by a staggering $24 billion between 2020 and 2023. That’s a 25% decline, folks!
Intel’s latest financials are a disaster. The company reported a 1% decline in revenues for the second quarter, and things are only expected to get worse. The company is suspending its dividend, and its second-half outlook is looking decidedly grim.
But don’t worry, Intel has a plan. They’re offering a "voluntary departure" program to employees, because who wouldn’t want to leave a sinking ship? And for those who do stay, there’s a "companywide enhanced retirement offering" – a nice way of saying "get out while you still can."
Intel’s decision to lay off 15,000 employees is a clear indication that the company is in crisis mode. It’s a desperate attempt to cut costs and salvage what’s left of its reputation. But let’s be real, it’s probably too little, too late. The question is, who’s next?
Author: Kayitsi.com
