Intel to Lay Off 15% of Workers, Cancel Billions in Projects in Bid for Rebound
Intel detailed dramatic steps to revive its sagging fortunes, outlining layoffs of 15% of its workforce and scrapping plans to spend tens of billions of dollars on new chip facilities in Europe.
The chip-making giant said Thursday it would refocus its strategy on the highly competitive market for AI chips, regaining market share in personal computer processors and developing its advanced 14A technology to sell to large customers.
Intel, which has long dominated the business of making chips for laptops and desktop computers, fell far behind competitors like Nvidia, Advanced Micro Devices and Taiwan Semiconductor Manufacturing Company after it failed to anticipate the surge in demand for the powerful chips fueling the artificial-intelligence boom.
“There are no more blank checks,” Intel Chief Executive Lip-Bu Tan wrote in a memo to staff. “Every investment must make economic sense.”
Revenue in the June quarter was roughly flat at $12.9 billion, beating Wall Street expectations, the company said.
Sales of chips used in PCs also beat estimates, benefitting from President Trump’s import tariff announcements, as major customers rushed to buy chips for laptops and desktop PCs—a market that has recently seen rising pressure from competitors like AMD – ahead of the levies taking effect.
Intel to Lay Off 15% of Workers, Cancel Billions in Projects
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