Kathmandu. The jobs of 25,000 employees in the chip manufacturing company are at risk.
According to a report in The New York Times, chip maker Intel plans to cut more than 25,000 jobs as it prepares for major changes. The company aims to reduce its workforce by about 75,000 by the end of 2025. Which was 100,000 at the end of last year.
Intel had reduced its workforce by about 15 percent, or about 15,000, by April. The cut comes after more than 15,000 jobs were cut last year.
Intel released the results of the second quarter this year. The company has released a net loss of $ 2.9 billion. Which includes costs associated with the latest cut.
The company’s second-quarter earnings remained steady at $12.9 billion. Which was more than the market expectations.
Intel expects revenues to be between $12.6 billion and $13.6 billion in the current quarter. The focus of which is $ 13.1 billion. This is higher than the average estimate of $12.6 billion for the quarter as of September.
In a letter to employees, Intel’s new CEO Lip-Bu Tan acknowledged the company’s difficult phase. “I know the last few months haven’t been easy. We are taking tough and necessary decisions to streamline the organization, bring better efficiency and increase accountability at every level of the company. ’
According to CEO Tan, the company has also postponed plans to build new factories in Germany and Poland. The company will slow production at its plant in Costa Rica and relocate some of its operating factories to Vietnam and Malaysia.
Intel said the move was part of an effort to reduce its operating costs and improve the efficiency of global operations.
In April, the company announced plans to reduce its annual operating expenses from $17.5 billion to $17 billion and to $16 billion by 2026. Intel said it was on track to meet those goals.
The company was once a global chip manufacturer. But now it is struggling.
During the personal computer boom in the 1990s, it dominated the microprocessor business. However, it has missed the rise of smartphones and has lagged behind in the fast-growing AI chip segment.
