Dying processors, losing market share to AMD

The rumors that Intel was laying off thousands of workers turned out to be true, but it gets worse: Intel is laying off over 15% of its global workforce due to a very bad Q2 2024 earnings report that sent Intel shares down more than 30% in 24 hours.

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Intel shares fell from $31 to $21 after Q2 2024 results, a disaster for Intel shareholders, the brand itself, and the future of the company.

To make matters worse, their 13th and 14th generation Core processors are struggling… no recalls have been announced… Arc is all but dead, aside from being dumped into Lunar Lake processors as a GPU board… and now over 30% of their stock price is down and over 15% of their global workforce has lost their jobs.

Intel CEO Pat Gelsinger said:Our second quarter financial results were disappointing, even as we achieved key product and process technology milestones. The trends in the second half of the year are more challenging than we expected, and we are leveraging our new operating model to take decisive actions that will improve operational and capital efficiencies while accelerating our IDM 2.0 transformation. These actions, combined with the launch of Intel 18A next year to regain our leadership in process technology, will strengthen our market position, improve our profitability and create value for shareholders.“.

Intel explained: “The company will streamline its operations and significantly reduce expenses and headcount by reducing non-GAAP research and development and marketing, general and administrative (MG&A) expenses to approximately $20 billion in 2024 and approximately $17.5 billion in 2025, with additional reductions expected in 2026. Intel is expected to reduce its headcount by more than 1.5%, with the majority of the reductions to be completed by the end of 2024.“.