(San Francisco) Intel announced on Thursday a major social plan to reduce its costs by 10 billion dollars: the American semiconductor giant plans to lay off more than 15% of its staff by the end of the year.
The company had nearly 125,000 employees at the end of 2023, so around 18,000 people are expected to lose their jobs.
Lagging behind its competitors in chips adapted to generative artificial intelligence (AI), the American group published net losses of 1.6 billion dollars in the second quarter, instead of 1.5 billion in net profit a year ago.
While the rest of the industry is investing heavily in cutting-edge electronic components, paid for at exorbitant prices by the technology giants (Microsoft, Google, etc.), Intel plans to reduce its capital expenditures by more than 20% for the full year, to between $25 billion and $27 billion.
It also announced that it would not pay a dividend at the end of the year.
Its shares fell more than 19% in electronic trading after the close of trading on the New York Stock Exchange.
“Our financial performance was disappointing in the second quarter, even though we achieved key technology milestones,” Intel CEO Pat Gelsinger acknowledged.
The outlook for the second half is more challenging than we anticipated, and we are leveraging our new operating model to take decisive actions that will improve our processes in terms of efficiency,” he added, quoted in the results release.
The group achieved 12.8 billion dollars of turnover in the second quarter, less than expected by analysts and down 1% over a year.