"We plan to deliver $10 billion in cost savings in 2025, and this includes reducing our head count by roughly 15,000 roles, or 15% of our workforce. The majority of these actions will be completed by the end of this year," the document says.
Pat Gelsinger explained that the company has to bring its cost structure in line with Intel's new operating model and radically change the way it works.
He emphasized that the company's revenues did not grow as expected. In addition, Intel has yet to fully benefit from "powerful trends such as artificial intelligence."
"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," Pat Gelsinger emphasized.
He added that the company will soon announce an expanded pension program for eligible employees and offer a voluntary resignation program.
According to Intel, the company's revenue in the second quarter of 2024 decreased by 1% to $12.8 billion compared to the same period in 2023. In the third quarter of this year, the company expects to generate revenue of $12.5 billion to $13.5 billion.
Recently, informed sources reported that Intel was preparing for large-scale layoffs. They warned that thousands of employees would lose their jobs.