CHIPMAKER INTEL TO CUT 15,000 JOBS AS TRIES TO REVIVE ITS BUSINESS AND COMPETE WITH RIVALS

Chipmaker Intel says it is cutting 15% of its huge workforce — about 15,000 jobs — as it tries to turn its business around to compete with more successful rivals like Nvidia and AMD.

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In a memo to staff, Intel Corp. CEO Pat Gelsinger said the company plans to save $10 billion in 2025.

“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote in the memo published on Intel’s website. "Our revenues have not grown as expected - and we've yet to fully benefit from powerful trends, like Al. Our costs are too high, our margins are too low."

The job cuts come in the heels of a disappointing quarter and forecast for the iconic chip maker founded in 1968 at the start of the PC revolution.

Intel is announcing an “enhanced retirement offering” for eligible employees and offer an application program for voluntary departures.

“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” he said. The bulk of the layoffs are expected to be completed this year.

The Santa Clara, California-based company is also suspending its stock dividend as part of a broader plan to cut costs.

Intel reported a loss for its second quarter along with a small revenue decline, and it forecast third-quarter revenues below Wall Street’s expectations.