Breaking Intel plans to layoff more than 16,000 workers, or 15 percent, with most cuts coming by the end of the year as the x86 giant scrambles to get its finances under control.

"By implementing our spending reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet," Intel CFO David Zinsner wrote in the mega-corp's second-quarter earnings report Thursday.

"We expect these actions to meaningfully improve liquidity and reduce our debt balance while enabling us to make the right investments to drive long-term value for shareholders."

While Intel was widely expected to announce sweeping layoffs, the scope of the staff reductions is larger than anticipated. "Intel expects to reduce headcount by greater than 15 percent with the majority completed by the end of 2024," the biz stated. That's up from the eight percent rumored this week.

The Xeon maker employs about 110,000 workers across its various divisions, putting the total cuts at more than 16,000.

These cuts will impact multiple divisions including research and development, marketing, and general and administrative roles. Intel will also cut capital expenditures by more than 20 percent to between $25 and $27 billion in 2024 now that it's achieved its goal of five process nodes in four years. The x86 titan plans to cut cap-ex spend back further in 2025 to $20-23 billion.

"Intel is now shifting its focus toward capital efficiency and investment levels aligned to market requirements," the company's earnings report reads.

Whether these reductions will impact Intel's foundry build, we'll have to wait and see.

And in a blow to shareholders, Intel is also waving goodbye to its quarterly dividend beginning in Q4, as it recognizes "the importance of prioritizing liquidity to support the investments needed to execute its strategy."

Combined, Intel expects these cuts to save it more than $10 billion in 2025, which it says will help it "achieve clear line of sight toward a sustainable business model."

Intel shares are trading down 20 percent in after-hours. This is a developing story; we'll update it with more details as soon as possible.

https://www.theregister.com//2024/08/01/intel_to_ax_headcount/