Intel, the semiconductor chip manufacturer, has announced plans to reduce its workforce as part of cost-cutting measures to navigate a challenging macro-economic environment. The company did not disclose how many workers would be affected but said the layoffs would occur across the company.
“Intel is working to accelerate its strategy while navigating a challenging macro-economic environment,” the company said in an emailed statement. “We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth.”
The announcement comes after Intel reported its largest quarterly loss in company history last month, with a net loss of $2.8 billion in the first quarter and revenue down 36% year-over-year. Despite the loss, the company paid out $1.5 billion in dividends.
According to Business Today, Intel will cut jobs "across the board" and the decision was taken to ensure its long-term growth. The US-based semiconductor manufacturer took similar steps last year following the Q3 2023 (ending in September) quarterly results. At that time, Intel suggested the company planned to cut costs by reducing factory work hours for some of its workforce. Around the same period, the company announced the first round of layoffs, which also affected some employees at Intel's Bengaluru office. The Santa Clara, California-based company has also reportedly cut employee and executive pay earlier this year, according to Reuters. In October 2022, The Wall Street Journal reported that Intel had begun targeted job cuts and aimed to reduce costs by $3 billion in 2023.