Intel To Cut 16,000 Jobs To Save Costs

Intel has announced plans for a substantial workforce reduction, surpassing initial expectations, as part of a comprehensive strategy to bolster its financial position and streamline operations. The company intends to lay off over 16,000 employees, representing more than 15% of its global workforce, with the majority of these cuts slated for completion by the end of 2024, according to the firm's second-quarter earnings report released on Thursday. Concurrent with the workforce reductions, Intel has outlined plans to significantly curtail its capital expenditures, projecting a decrease of over 20% to a range of $25 to $27 billion in 2024, with further reductions anticipated in 2025. This shift in focus towards capital efficiency comes as the company achieves its goal of developing five process nodes in four years, signaling a recalibration of investment levels to align with market demands. As part of its financial restructuring, Intel has also made the decision to suspend its quarterly dividend starting in the fourth quarter of 2024, prioritizing liquidity to support strategic investments. The cumulative effect of these cost-saving initiatives is expected to yield over $10 billion in savings by 2025.

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