Pat Gelsinger explained that Intel’s expenses are too high and their profits are too low.
Intel Layoff: Intel CEO Pat Gelsinger recently informed employees about upcoming job cuts aimed at saving money and reducing costs. In a memo he revealed plans to achieve 10 billion dollars in savings by 2025 which involves cutting about 15,000 jobs or 15 per cent of the workforce. To support this transition, Intel will announce an enhanced retirement package for eligible employees and a voluntary departure program next week.
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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.”
Pat Gelsinger explained that Intel’s expenses are too high and their profits are too low. “Our costs are too high, our margins are too low. 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.”
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Pat Gelsinger explained to employees and 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 prioritize a culture of honesty, transparency and respect in the weeks and months to come.”
He also added “There’s too much complexity, so we need to both automate and simplify processes. It takes too long for decisions to be made, so we need to eliminate bureaucracy. And there’s too much inefficiency in the system, so we need to expedite workflows.”
Pat Gelsinger acknowledged that the road ahead will be challenging for everyone. “I have no illusions that the path in front of us will be easy. You shouldn’t either. This is a tough day for all of us and there will be more tough days ahead. 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.”
