That’s a lot of layoffs.

The chipmaker just announced it’s downsizing its workforce by over 15 percent as part of a new $10 billion cost savings plan for 2025, which will mean a headcount reduction of greater than 15,000 roles, Intel tells The Verge. The company currently employs over 125,000 workers, so layoffs could be as many as 19,000 people.

Intel will reduce its R&D and marketing spend by billions each year through 2026; it will reduce capital expenditures by more than 20 percent this year; it will restructure to “stop non-essential work,” and it’ll review “all active projects and equipment” to make sure it’s not spending too much.

  • shastaxc@lemm.ee
    14·
    3 months ago

    His $16m salary will not cover the $10b they are planning to save. These layoffs don’t cover that amount of money just in labor costs alone. Those employees were working projects that are being axed. The licensing, rental and utility costs of offices, equipment purchases, etc all contribute to that figure.

    • FiveMacs@lemmy.ca
      1·
      3 months ago

      Firing 1 massive overpaid instead of approx 10-15% of your workforce seems like a MUCH smarter decision…

      • NateNate60@lemmy.world
        2·
        3 months ago

        I think you missed the point here. Firing the CEO would not save as much money as firing the 1,500 workers.

        I am not defending capitalists here, but there are better arguments than this.