Anyone who thinks that the gaming industry is in trouble should take a look at the tech industry. Intel has announced massive layoffs, with 15,000 jobs set to be eliminated.
It’s not just the gaming industry that’s going through a lot of trouble right now, but other areas like the tech industry too. The layoffs at Bungie sound almost ridiculous in comparison. Intel isn’t just bringing out the broom, they’re coming with the big sweeper.
By the end of the year, the chipmaker plans to cut around 15,000 jobs, which corresponds to around 15 percent of the total workforce. The goal is to cut costs in order to get back into the profitable zone after the company lost some ground to strong competitors such as AMD or NVIDIA. The company’s structure is not competitive in its current state. Gelsinger also says that Intel’s annual revenue fell by $24 billion between 2020 and 2023, while the workforce grew by 10% in the same period.
“We plan to achieve $10 billion in cost savings by 2025, and that includes eliminating approximately 15,000 jobs, or 15% of our workforce,” Intel CEO Pat Gelsinger said in a Notice to employees
The company’s silicon division is currently making massive losses and in the booming AI market, Intel has literally been lost to NVIDIA. CEO Gelsinger’s plans include, among other things, cleaning up the portfolio and eliminating poorly performing projects. This could possibly include the GPU area. Although Intel has certainly positioned itself respectably, there is no getting past NVIDIA, followed by AMD.
In addition, operating costs are to be cut, areas of responsibility streamlined and merged, and capital expenditure and manufacturing costs are to be reduced. Dividends will be suspended in the coming quarter. It seems as though the company is facing some major changes. The chip giant, which was unchallenged at the top a few years ago, has hit a serious slump.