US chipmaker Intel has announced that it will cut more than 15 per cent of its workforce, which numbers over 100,000, in response to disappointing quarterly financial results.
The company, which has 4,900 employees in Ireland, is expected to complete the majority of the redundancy process by the end of 2024. It has also charted out plans to cut operating expenses and reduce capital expenditure of more than $10 billion in 2025.
In a message to staff, Intel CEO Pat Gelsinger said: “Our revenues have not grown as expected and we have yet to fully benefit from powerful trends, like AI.”
“Our costs are too high, our margins are too low. We need bolder actions to address both, particularly given our financial results and outlook for the second half of 2024. which is tougher than previously expected,” he added.
While Intel remains a key player in the personal computer and server markets, it has struggled to keep paces with its rivals when it comes to artificial intelligence.
In 2022, Intel had slashed thousands of jobs, reducing its global headcount from almost 132,000 to just under 125,000.