Intel Lays Off 17,000 Employees

Chip maker Intel has reported it is letting go about 15% of its workforce, which translates to about 17,000 jobs. Intel reports this is part of a wide-scale cost cutting measure company wide. Intel’s CEO Pat Gelsinger said: “This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history. Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate”. Pat continued by saying that: “Our costs are too high, our margins are too low. We need bolder actions to address both — particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected. These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career. My pledge to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months to come." 

The lay offs come just a few months after the Biden Administration gave Intel $8.5 billion in federal grants to make it a dominant chipmaker in the US. Some are asking if this lay off is fair or sensible.