The company had a disappointing second quarter and looks set to cut more than 18,000 staff globally. It is unclear how many Irish jobs will be affected.
Intel is once again attempting to reduce its costs by cutting its workforce and has confirmed plans to eliminate thousands of jobs later this year.
The chipmaker said it will cut more than 15pc of its workforce with the majority of these job cuts taking place by the end of this year. Intel plans to reduce its costs by more than $10bn in 2025 through these new reductions and other measures.
Intel employed more than 130,000 staff by the end March 2024 according to earlier quarterly results. Based on this figure, the company looks set to cut more than 18,000 staff. It currently employs about 4,900 people in Ireland and it is unclear how many of these jobs will be impacted.
The announcement was made during Intel’s second quarter financial results, which saw the company’s revenue – $12.8bn – fall by 1pc compared to the same period last year. The company had a net loss of $1.6bn, compared to a quarterly profit of $1.5bn for the same period last year. Intel CEO Pat Gilsinger described the quarterly result as “disappointing”.
“Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation,” Gelsinger said.
“These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value.”
Intel has been on a period of recovery for some time now, working to reduce its costs and transform its business. The chipmaker announced a smaller round of job cuts in October 2022 when it was impacted by a slump in global PC sales.
While PC sales have stabilised, Intel has been struggling to expand its foundry business and make chips for other companies. In March, the company bagged $8.5bn through US funding to boost domestic production of semiconductors and continue expanding across the country.
Intel has also agreed to give a 49pc equity interest of its Fab 34 facility in Kildare to Apollo Global Management, in a deal to receive $11bn from the asset management company.
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