Intel CEO Pat Gelsinger announced in August that Intel would be reducing its head count by roughly 15,000 roles (or 15% of its workforce) as part of a $10 billion cost savings plan for 2025, but even more layoffs may be coming, according to a new message that the executive sent to employees yesterday about how the company must “continue acting with urgency to create a more competitive cost structure,” with a note about how its current product portfolio will undergo “streamlining.” The message was shared on the same day that Intel was awarded up to $3 billion in direct funding under the CHIPS and Science Act for Secure Enclave, a program that is said to expand trusted manufacturing of leading-edge semiconductors for the U.S. government.
Gelsinger on Intel’s key priorities:
- “We must build on our momentum in Foundry as we near the launch of Intel 18A and drive greater capital efficiency across this part of our business.”
- “We must continue acting with urgency to create a more competitive cost structure and deliver the $10B in savings target we announced last month.”
- “We must refocus on our strong x86 franchise as we drive our AI strategy while streamlining our product portfolio in service to Intel customers and partners.”
Some coverage from CNBC about Intel’s recent infusion:
Intel on Secure Enclave:
The Secure Enclave program builds on previous projects between Intel and the Department of Defense (DoD) such as Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) and State-of-the-Art Heterogeneous Integration Prototype (SHIP). As the only American company that both designs and manufactures leading-edge logic chips, Intel will help secure the domestic chip supply chain and collaborate with the DoD to help enhance the resilience of U.S. technological systems by advancing secure, cutting-edge solutions.