‘More tough days ahead’…Read Intel CEO’s memo to employees on cutting 15,000 jobs

Intel

In a bid to save money and reduce costs, Intel has announced that it is cutting a massive number of jobs. Pat Gelsinger, CEO, Intel sent a memo to all employees stating the reasons behind the drastic decision.  In the memo, Gelsinger revealed that the company plans to deliver $10 billion in savings by 2025. As a result, 15% of the total workforce is being reduced.

"This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history,” Gelsinger wrote.

He said that currently Intel’s costs are too high, margins 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,” he said.

“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 prioritise a culture of honesty, transparency and respect in the weeks and months to come,” he explained to employees in the memo.

Intel will announce a companywide enhanced retirement offering for eligible employees and broadly offer an application program for voluntary departures next week. “I believe that how we implement these changes is just as important as the changes themselves, and we will adhere to Intel values throughout this process,” Gelsinger added.

Gelsinger further warned employees of more tough days ahead. “But as difficult as all of this is, we are making the changes necessary to build on our progress and usher in a new era of growth,” he said.

Intel will also stop all “non-essential” work as it will reduce layers, eliminate overlapping areas of responsibility. “For example, we will consolidate Customer Success into the Sales, Marketing and Communications Group to streamline our go-to-market motions,” Gelsinger said.