Intel Announces Major Job Cuts in Turnaround Plan
15,000 Employees to Be Laid Off by Year's End
Intel, the Silicon Valley chipmaker, announced on Thursday that it would slash more than 15,000 jobs as part of a turnaround plan aimed at improving its financial performance. The move comes after the company announced job cuts beginning in October 2022, which reduced its workforce by about 5% to 124,800 by year's end.
Positive Revenue Growth Despite Job Cuts
Despite the job cuts, Intel's Client Computing Group, which makes PC chips, contributed $7.41 billion in revenue in the fourth quarter, an increase of 9%. This figure was in line with the $7.42 billion consensus estimate.
AI Focus and Microsoft Partnership
Intel has been focusing on artificial intelligence (AI) as a key area for growth. The company recently announced that it will collaborate with Microsoft to develop a custom computing chip for Microsoft's AI systems. Intel also expects to beat revenue expectations for the current quarter.
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