After recently confirming that the 13th and 14th generation Core series desktop processors had problems due to microcode algorithms, and even confirming that the situation could not be recovered once the failure occurred, Intel announced earlier that it would lay off 15% of its employees in order to stabilize its financial situation, which is expected to affect about 15000 employees.
This layoff plan will be part of Intel's $100 billion cost-cutting approach. In the second-quarter financial report for fiscal year 2024 released earlier, it was confirmed that revenue reached $128 billion, a decrease of 1% compared to the same period last year, but the net profit loss was $16 billion, which was also a significant decrease compared to the same period last year.
Among all revenue, the Personal Computing Group's revenue reached US$74 billion, an increase of 9% over the same period last year, and its net profit reached US$24.97 billion. The data center and artificial intelligence business revenue reached US$30 billion, a decrease of 3% over the same period last year, and its net profit was US$2.76 million. The network and edge business revenue was US$13 billion, a decrease of 1% over the same period last year, and its net profit was US$1.39 million. Intel's foundry business revenue was US$43 billion, an increase of 4% over the same period last year, and its net profit showed a loss of US$28.3 billion.
However, other business projects including Altera FPGA computing business, Mobileye autonomous driving business, and other business projects all suffered losses, with total revenue reaching US$9.68 million, a 32% decline in total revenue compared with the same period last year, and a total loss of US$3500 million.
Intel CEO Pat Gelsinger said in a statement that layoffs would be a difficult decision, but the company must make the necessary changes.
Many people believe that although Intel continues to promote the IDM 2.0 plan, its process technology still seems to be unable to catch up with the current progress of its competitors. In order to make its new processors more competitive in the market, it must even spend money to compete with Apple, MediaTek, AMD, and Qualcomm for TSMC's production capacity to produce its upcomingCodenamed "Lunar Lake", the next-generation Core Ultra laptop processor.
