Intel is undergoing a significant transformation to address challenges in its core business and compete effectively in the AI chip market.
Intel plans to cut over 15% of its workforce, impacting roughly 17,500 employees.
Declining demand for traditional data center semiconductors.
Intel's share price plummeted 20% in after-hours trading.
Shares of Nvidia and AMD, strong players in the AI chip market, rose after-hours.
Shares of Nvidia and AMD, strong players in the AI chip market, rose after-hours.
CEO Pat Gelsinger emphasizes shifting resources to customer support and reducing headquarters staff.
Intel currently employs approximately 116,500 people (excluding subsidiaries).
Intel plans to reduce operating expenses and capital expenditure by more than $10 billion in 2025.
Analysts question whether the cost reductions are enough and come too late.
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