Intel with major job cuts since 2022
Since the end of 2022, the chip manufacturer has laid off almost 23,000 employees. The size of the workforce has thus returned to the level of 2018.
(Image: Sundry Photography/Shutterstock.com)
Over the last two years, Intel has cut 23,00 jobs, which corresponds to around 17 percent of the workforce, reducing the company's total number of employees to around 108,900. The size of the workforce is thus roughly the same as in 2018, when Intel generated almost 18 billion US dollars more in annual revenue. Revenue per employee has fallen significantly in recent years due to the weakening business: from just under 700,000 dollars at its peak in 2020 to 440,000 dollars in 2023, followed by a slight increase in 2024 to 490,000 dollars.
Intel wants to save money
Intel spent 7 billion dollars on restructuring in 2024 alone. Just under 2.5 billion dollars were spent on severance and pension schemes for employees. The mass layoffs are part of Intel's plan to reduce annual corporate spending by 10 billion dollars by the end of 2025
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It is not clear which areas of the company will be hit the hardest by the job cuts. However, advertising and administration costs have fallen by a fifth in the last two years. Expenditure on research and development has also fallen by six percent in the same period. By comparison, competitor Nvidia's expenditure in this area rose by 48 percent in the first half of the 2024 financial year alone. AMD is also spending more money in these areas.
In general, Intel has repeatedly discontinued or sold off divisions in recent years. For example, the SSD division was sold to SK Hynix in 2020, the production of phase-change memory (Optane) was discontinued in 2022 and there have been no more mini PCs from Intel since 2023. Intel is currently preparing to spin off its investment arm Intel Capital, which is to become an independent company.
(tlz)
