Akshata Sharma
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American chip maker Intel is laying off 15,000 employees after reporting a loss of $1.6 billion in the April-June period.
That's down from a profit of $1.5 billion a year earlier.
CEO Pat Gelsinger said the company plans to deliver $10 billion in cost savings in 2025.
"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 in a blog post.
Intel will announce an enhanced retirement offering for eligible employees and offer an application program for voluntary departures next week.
He said the company's revenue has not grown as expected, costs are too high and 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.
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