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The Exiled · 01.08.2024., 22:39

Citiraj:

Intel to layoff more than 15% of workforce — almost 20,000 employees — encountered Meteor Lake yield issues, suspends dividend

Citiraj:

Intel announced today that it plans to lay off more than 15% of its workforce by the end of the year, meaning roughly 20,000 employees or more based on recent headcount numbers, amid troubling financial results this quarter. The company also announced that it has encountered yield issues with its Meteor Lake processors, which negatively impacted the bottom line. The company also plans to suspend its dividend in the fourth quarter.

Intel CEO Pat Gelsinger published a blog post outlining the changes and the rationale behind them. He cited that the company plans to reduce spending by $10 billion in 2025 with the move. The company will offer employees buyouts and early retirement options. Intel did say that its 18A process node, which is exceedingly important to its success as a fledgling custom foundry, remains on track — the company recently released its 1.0 PDK, a critical set of design rules that defines how chipmakers can produce chips using the node, to its customers. Intel also says its next-gen Panther Lake and Clearwater Forest processors also remain on track.

Intel will reduce its R&D and marketing spend by billions each year through 2026; it will reduce capital expenditures by more than 20 percent this year; it will restructure to “stop non-essential work,” and it’ll review “all active projects and equipment” to make sure it’s not spending too much. On the company’s earnings call, Intel CFO David Zinsner suggested that the company’s next flagship AI laptop chip, Lunar Lake, won’t be enough to turn things around.

Izvor: Tom's Hardware i The Verge