Intel had announced it is reducing its global workforce by around 15,000 employees.
As detailed in its Q2 2024 financial results published yesterday, Intel revealed a $10 billion cost reduction plan which will include a more than 15% reduction in headcount "to resize and refocus" the company.
The majority of layoffs will be completed by the end of 2024, it said.
In a separate note to employees, CEO Pat Gelsinger addressed the layoffs by saying the company was "making some of the most consequential changes in [its] history."
"We must align our cost structure with our new operating model and fundamentally change the way we operate," Gelsinger wrote. "Our revenues have not grown as expected – and we've yet to fully benefit from powerful trends, like AI. 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."
Gelsinger noted that Intel's "annual revenue in 2020 was about $24 billion higher than it was last year" despite its workforce being 10% larger.
Intel posted Q2 2024 revenue of $12.8 billion, a decrease of 1% year-over-year. It forecast earnings of between $12.5 billion to $13.5 billion for its third quarter.
