The crisis has reached the giant: Intel will lay off about 17,000 employees and significantly cut research and marketing spending

A massive wave of layoffs has also reached one of the largest techno-giants - the American corporation Intel.

Here's What We Know

Processor manufacturer Intel announced that it will cut 15% of employees (about 17,500 people) and suspend dividends from the IV quarter of 2024. The CEO of the corporation Pat Gelsinger said that most of the job cuts will be completed by the end of 2024.

Amid the announcement, the company's shares fell 20% and Intel lost more than $24bn in market value.

Intel Corporation's total revenue for 2023 fell 14% year-on-year to $54.2bn, while net income fell almost fivefold to $1.7bn. According to Gelsinger, Intel's chip business could suffer its worst operating losses in 2024.

To address the financial problems, Intel will cut research, development and marketing spending by billions of dollars through 2026.

The company hopes to be out of the crisis by 2027.

The main reason for Intel's problems is called lagging behind competitors AMD and NVIDIA in the development and application of generative artificial intelligence, so this industry will be one of the highest priorities in the development of Intel.

Source: The Verge