Intel is slashing 15 per cent of its staff as part of a $10 billion cost-cutting plan, the US tech giant announced in its second-quarter earnings. CEO Pat Gelsinger stated that they need to align their cost structure with their new operating model to adapt to the changing industry. Revenue in the second quarter was $12.8 billion, with a loss of $1.6 billion.
Intel plans to shift to manufacturing competitors’ processors and is vying to become a reliable chip manufacturer embraced by the global market. However, this transformation will be costly and will result in job cuts. Despite the potential risks, the company hopes its AI investments will pay off and lead to a sustainable semiconductor supply chain.
Amazon also reported its earnings, with a 10 per cent growth in sales and doubled operating profit. However, the company’s guidance disappointed investors, causing a 5 per cent drop in after-hours trading.