The transformation plan was frustrated and the quarterly revenue declined.

Core East and West News on August 2, US chip giant Intel announced that it will reduce costs by US $ 10 billion by 2025, including about 15,000 layoffs, accounting for 15%of the total number of employees. Most of the actions will be completed by the end of this year.

Intel will announce higher retirement benefits for qualified employees in the company next week, and provide a wide range of applications for voluntary resignation.Although we have reached key products and technical technical milestones, our financial performance in the second quarter is also disappointing.The trend in the second half of the year is more challenging than our previous expectations.Intel CEO Pat Kissinger said.

Intel plans to focus on four key priorities:

1Reduce operation expenses: The company will streamlined operations, and the number of expenditures and employees will be greatly reduced. In 2024, non -public accounting standards research and development, marketing, general and administrative expenditure will be reduced to about 20 billion US dollars.The annual will be further reduced.Intel is expected to lay off more than 15%, most of them will be completed by the end of 2024.

2To reduce capital expenditure: With the end of the four -year and five -node strategy, Intel is focusing on the capital efficiency and investment level that meets market demand.This will reduce the total capital expenditure in 2024 by more than 20%compared to the previous forecast, and reduce the total capital expenditure in 2024 to US $ 25 billion to 27 billion US dollars; net capital expenditure will be $ 11 billion to $ 13 billion.By 2025, the company's goal is that the total capital expenditure will be US $ 2 billion to 23 billion US dollars, and net capital expenditure will be 12 billion to 14 billion US dollars.

3Reduce sales costs: Intel expects that by 2025, non -variable sales costs will save $ 1 billion.Next year, the product portfolio will continue to become a unfavorable factor, which will cause the gross profit margin in 2025 to improve a gentle year.

4To maintain core investment to implement the strategy: Intel continues to advance its long -term innovation, and has achieved a leading position in process technology and products. The improvement of action efficiency is expected to further support its execution.

In addition, Intel continued to maintain investment and established a flexible and sustainable semiconductor supply chain in the United States and around the world.Intel will also suspend dividends from the fourth quarter of 2024.

Intel today announced the full text of Kissinger's employee, which wrote: Our income has not increased as expected -and we have not fully benefited from strong trends such as AI.Our cost is too high and the profit margin is too low.

We need to take more bold actions to solve these two aspects -especially considering our financial performance and prospects in the second half of 2024, which is more difficult than previously expected.Intel Chief Financial Officer David Zinser said that the second quarter performance was affected by the gross profit margin adverse factors brought about by the accelerated growth of AI PC products, which was higher than the typical costs related to non -core business and unavailable capacity.

By cutting expenses, Intel is taking active measures to increase profits and strengthen its balance sheet. It is hoped that these measures can effectively improve liquidity and reduce debt balances. At the same time, Intel can make correct investment and bring long -term value to shareholders.Intel fell about 20%in the US stock market, and the market value loss exceeded $ 24 billion.According to financial reports, Intel's revenue in the second quarter of fiscal 2024 was $ 12.8 billion, a year -on -year decrease of 1%; net loss was $ 1.6 billion.

The revenue of various departments is as follows:

Client Calculation Division (CCG): revenue was US $ 7.4 billion, a year -on -year increase of 9%.

Data Center and Artificial Intelligence Division (DCAI): revenue is $ 3 billion, a year -on -year decrease of 3%.

Network and Edge Division (NEX): revenue is 1.3 billion US dollars, a year -on -year decrease of 1%.

Intel OEM: revenue is 4.3 billion US dollars, an increase of 4%year -on -year.

Altera: Revenue is US $ 361 million, a year year of 57%.

Mobileye: Revenue is 440 million US dollars, a year -on -year decrease of 3%.

Intel performance report shows that since December 2023, Intel's AI PC shipments have exceeded 15 million units, far exceeding the sum of all competitors. This data is expected to exceed 40 million units at the end of the year.

thisInstead, Intel is approaching its four -year five -year and five -node strategy. Intel 18A is expected to be put into production by the end of this year and began production in the first half of 2025.We are using our new operation model to take decisive operations to improve operation and capital efficiency, while accelerating our IDM 2.0 transformation.Kissinger believes that these actions, coupled with the launch of Intel 18A next year to re -obtain process technology leading positions, will strengthen our position in the market, improve our profitability, and create shareholder value.Intel is expected to revenue from 12.5 billion to 13.5 billion US dollars in the third quarter of 2024, and the gross profit margin is 34.5%.Intel said it will continue to invest in the innovation of process technology and products.

In the letter of employees, Kissinger talked about the future thinking:

I don't have fantasies, thinking that the road in front of us will be smooth.You should do so.For all of us, this is a difficult day, and there will be more difficult days in the future.Although it is difficult, we are undergoing necessary changes to make persistent efforts on the basis of our progress and usher in a new era of growth.

When we started this journey, we set a high goal because we knew that Intel was a place where great ideas were born and a place where the status quo could be over.After all, our mission is to create the technology that changes the world and improve the life of everyone on the planet.In the best case, we can more reflect these ideals than any company in the world.

In order to achieve this mission, we must continue to promote our IDM 2.0 strategy, which remains unchanged: re -establish the leading position of technology and technology;; Become a world -class, leading internal and external customer foundries; rebuilding product portfolio leadership; making AI everywhere.

pastIn a few years, we have rebuilt a sustainable innovation engine, which is largely in place and entered the right track to a large extent.It's time to focus on creating sustainable financial engines to promote our performance.We must improve execution, adapt to new market reality, and operate in a more flexible way.This is the spirit of the action we are taking -knowing what we have made today, no matter how difficult it is, it will strengthen meThe ability to serve customers and develop our business in the next few years.

When we take the next step during the journey, let us not forget that what we do has never been needed as it is now.The world will be more and more dependent on silicon -the world needs a healthy, vibrant Intel.This is why we are doing so importantly.We are not only reshaping a great company, we are also creating technology and manufacturing capabilities, which will reshape the world in the next decades.In the process of pursuing goals, we should never ignore this.

15,000 chip giants!