Aug 02, 2024 12:34 PM IST

Intel CEO Pat Gelsinger informed employees that the company is cutting jobs in order to save money and reduce costs. In a memo to all employees, Pat Gelsinger revealed that the company plans to deliver $10 billion in savings by 2025 owing to which 15% of the total workforce is being reduced. Intel will announce a enhanced retirement offering for eligible employees and offer an application program for voluntary departures next week.

He said, “This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history.”

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Intel’s costs are too high, margins too low, he said, asserting, “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.”

Explaining to employees, Pat Gelsinger said, “These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career. My pledge to you is that we will prioritise a culture of honesty, transparency and respect in the weeks and months to come.”

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He further said, “I believe that how we implement these changes is just as important as the changes themselves, and we will adhere to Intel values throughout this process.”

Warning employees of more tough days ahead, he said, “But as difficult as all of this is, we are making the changes necessary to build on our progress and usher in a new era of growth,” he said.