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Intel (NASDAQ: INTC) plans to lay off approximately 15% to 20% of its workforce this summer under new CEO Lip-Bu Tan’s cost-cutting strategy. This could affect around 20,000 employees, including those in manufacturing as well as the marketing division, which may outsource jobs to Accenture, utilizing AI for marketing services.
The company spent $856 million on advertising in 2024, down from $950 million in 2023 and $1.2 billion in 2022. Outsourcing marketing could potentially save Intel hundreds of millions, aiding its effort to return to profitability amid a decline in product demand and a gross margin drop to 32.7% in 2024.
Last August, Intel laid off around 15% of its workforce as part of ongoing restructuring, and the upcoming cuts aim to simplify operations and improve efficiency amidst decreasing revenue, which was $53 billion last year.
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