Intel is building in Poland, while firing thousands of workers worldwide

Intel announces savings

Intel announced it will combat worse-than-anticipated financial results. The processor manufacturer will lay off as many as 15% of its employees, which means that up to 17,000 people will lose their jobs. Additionally, it will stop paying dividends and begin the restructuring process at its unprofitable factories.

The value of the California-based company’s shares has fallen by as much as 20%, or about $24 billion, in recent times. Similar Intel’s main competitors did not record any declines. Nvidia and AMD shares are holding their level. Which only goes to show that both competitors have better entered the growing AI market.

I need fewer people at headquarters, more in operational roles helping our customers.

– announces Intel CEO Pat Gelsinger.

Intel Overslept on AI Development

Intel currently employs more than 115,000 people worldwide. Most of the layoffs are to be carried out this year. The company missed the peak of AI technology development and now has to catch up with its rivals. To this end, it will implement a number of changes in its factories aimed at better preparing them for the production of processors intended for artificial intelligence language models.

In addition to employee layoffs, Intel is also planning savings in other areas. Already in 2025 the company is expected to reduce spending by more than $10 billion.

Interestingly AI processors themselves are selling quite well for Intel. Their sales have grown by 9% in recent months.

Intel’s problem is that the cost of producing AI processors is much higher than standard units. This means that the profit from their sale is not what the company expects.

– analyzes the situation Bob O’Donnell from the analytical company TECHnalysis Research.

See: Intel changes plans. This is the end of large investments in Europe