Intel is making a significant cut to its workforce as part of a major restructuring effort aimed at reducing costs and improving financial stability. The company will lay off 15,000 employees, which represents approximately 15% of its total workforce, as it seeks to save $10 billion by 2025. This decision was communicated by Intel CEO Pat Gelsinger in a memo to employees, who described the move as “painful” and warned of “more tough days ahead.”

In his memo, Gelsinger acknowledged the gravity of the situation, stating, “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.”

To mitigate the impact on affected employees, Intel will introduce an enhanced retirement offering for eligible workers and will provide a program for voluntary departures next week. Gelsinger explained that the company’s high costs and low margins necessitated these bold actions, especially in light of Intel’s financial performance and the challenging outlook for the second half of 2024.

Gelsinger further emphasized the personal difficulty of the decision, noting, “These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career.” He committed to maintaining a culture of “honesty, transparency, and respect” during this period of significant change.

Intel’s move comes as part of a broader strategy to streamline operations and enhance profitability amid a challenging economic environment. The company’s leadership is focused on navigating these turbulent times while striving to position Intel for future success.