Intel’s Lay-offs

Shockingly, Intel decided to follow in Tesla’s shoes and cut over 15% of its staff. Justifying their actions they claim the same reasons as Tesla.

They seek to regain their position as a market leader and boost their stock price. They also plan to suspend their dividend in Q4 2024.

Comparing Tesla and Intel’s decisions, it’s easy to see why Intel’s is much more of gamble. It’s competition has caught up to it and quickly at that.

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A Financial Tragedy 👊 

Accommodating their large downsize, Intel also decided to sell it’s stake in prolific chip designer, Arm Holdings. This was a total of 1.18 million shares and would have saw a profit of $147 million.

While this may seem like a sign that Intel is desperate, it will prove to help its buying power to allow for continued development in their AI chips.

The company claimed that they have cash and cash equivalents of $11.29 billion, and total current liabilities of about $32 billion. It is also noted that Intel’s stock lost 59% of it’s value this year.

Consequences And Future

This unfortunate move made by Intel has cost over 15,000 employees their position within the company. In total prior, Intel had a work-force of over 125,000 employees across its many branches.

The company also is downsizing it’s R&D budget across the board and restructuring new requirements. A tough choice when the company continues to grapple with two generations of chips that are defective.

It can be assumed Intel wishes to see in the coming year a true breakthrough in the AI scene while recouping it’s losses in the chip market.

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