U.S. chipmaker Intel to cut 15% of jobs

Intel’s decision to cut 15% of its workforce and suspend its dividend reflects significant strategic shifts as the company navigates a challenging period. The move to trim down comes as Intel focuses on revamping its manufacturing business and catching up in the AI chip sector, where competitors like Nvidia and AMD are currently leading.

This restructuring is part of a broader turnaround strategy under CEO Pat Gelsinger. The focus will be on enhancing its AI processor development and expanding its for-hire manufacturing capabilities. The suspension of dividends and the job cuts are intended to strengthen Intel’s balance sheet and streamline operations as the company addresses its current financial and competitive pressures.

The impact on Intel’s stock and the broader chip industry highlights the intense competition and rapid evolution in semiconductor technology, particularly in AI. Companies like Nvidia and AMD are benefiting from the AI boom, while Intel is working to regain its competitive edge.

This shift could have broader implications for the tech industry, especially in how major chipmakers adapt to the evolving landscape of AI and semiconductor manufacturing.