The rumors of Intel laying off thousands of employees were right, but it's even worse than that: Intel is laying off over 15% of its global workforce over a seriously bad Q2 2024 earnings report that has seen Intel stock sinking over 30% in 24 hours.
Intel stock has dropped from $31 down to $21 post-Q2 2024 earnings, which is a disaster for Intel shareholders, the brand itself, and the future of the company.
On top of that, their 13th Gen and 14th Gen Core CPUs are plagued with issues... no recalls announced... Arc is almost DOA apart from being thrown into Lunar Lake CPUs as GPU tiles... and now 30%+ of its stock price sliced away, and 15%+ of its global workforce to lose their jobs.
Intel CEO Pat Gelsinger said: "Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leverating our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation. These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value".
Intel explained: "The company will streamline its operations and meaningfully cut spending and headcount, reducing non-GAAP R&D and marketing, general and administrative (MG&A) to approximately $20 billion in 2024 and approximately $17.5 billion in 2025, with further reductions expected in 2026. Intel expected to reduce headcount by greater than 1 5% with the majority completed by the end of 2024".
