Intel to Lay Off 18,000 Workers and Cut $20 Billion in Costs

Intel announced it will cut 18,000 jobs, which is over 15% of its workforce, as part of a plan to reduce expenses by $20 billion this year. This decision follows a $1.6 billion loss reported for the last quarter.

Intel CEO Pat Gelsinger said their second-quarter results were disappointing despite reaching some key technology milestones. CFO David Zinsner noted that delays in AI product launches and unused facility capacity impacted their earnings. He added that cutting costs will help improve profits and strengthen Intel’s financial position.

The layoffs could affect about 18,000 of Intel's 124,800 employees. Additionally, Intel is halting a major $15 billion factory project in Israel due to changing business conditions.

This cost-cutting move comes after Intel had previously highlighted its new technologies in AI, aiming to compete with rivals like Nvidia, AMD, and Qualcomm. Gelsinger stressed that Intel’s latest processors are designed to drive major advancements in AI and computing.

Meanwhile, AI PCs are expected to make up 80% of the market by 2028, with major companies like Microsoft, Dell, HP, Samsung, and Lenovo integrating AI features into their devices.