• Intel to cut 15% of its workforce, reducing employee count to 75,000 by year-end.
• The cuts are part of a strategy by new CEO Lip-Bu Tan to make the company more cost-disciplined.
• Major factory expansions in Germany and Poland have been scrapped amid financial difficulties.
• Intel's second-quarter loss reached $2.9 billion despite a flat revenue of $12.9 billion.
• The company is pivoting to focus on AI chip markets where it has lagged behind competitors.

Intel has announced plans to lay off 15% of its workforce as the company grapples with significant financial challenges. This decision, which will reduce the workforce from approximately 96,400 to 75,000 employees by the end of the year, is part of a broader restructuring strategy from new CEO Lip-Bu Tan. "There are no more blank checks," Tan stated, indicating a move towards a cost-disciplined approach in the company's operations, according to Reuters, South China Morning Post, and India Times.

The layoffs are largely a result of Intel's ongoing struggle to adapt to the rapidly evolving semiconductor landscape, particularly in the artificial intelligence sector. As Intel faces a market dominated by competitors like Nvidia and AMD, it has announced that it will also halt significant factory expansions planned for Germany and Poland, which were anticipated to employ thousands. "We will build what our customers need, when they need it," Tan emphasized, mirroring the new strategic focus of the company, as reported by Reuters, Los Angeles Times, and India Times.

Despite posting a flat revenue of $12.9 billion in the second quarter, Intel's net loss increased to $2.9 billion, signaling deeper financial difficulties as the company continues to implement its restructuring strategy. The financial results underscore the challenges Intel faces in a climate where it must catch up with competitors in AI and semiconductor technologies. Additionally, Intel is re-evaluating its manufacturing processes, particularly the 14A technology, which may be paused if no significant customers are secured, according to Reuters, South China Morning Post, and Los Angeles Times.

As Tan navigates the restructuring, he has stated that the company is committed to aligning spending with market demands, which includes consolidating operations to enhance efficiency. "Over the past several years, the company invested too much, too soon," Tan noted, further emphasizing the need for a disciplined approach in future investments, as reflected in reports by Reuters and Los Angeles Times.