QCOSTARICA — Following Intel Corp’s announcement worldwide that it will lay off announcement indicated that it will layoff some 15% of its global workforce, or roughly 15,000 employees, after reporting losses of US$1.6 billion, the company in Costa Rica confirmed that there will be layoffs, but that it will not disclose how many and pledges to continue reducing costs.
“Intel is working to accelerate its strategy while significantly reducing costs, including business and function-specific workforce reductions in areas across the company. These are difficult decisions and we are committed to treating affected employees with dignity and respect. We are not disclosing any specific staff figures by site or country,” the company said in a press release.
This adjustment seeks to adapt to a new operating structure and reduce costs in an environment where rivals such as Nvidia and AMD have gained ground.
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Based in Santa Clara, California, Intel expects these movements to strengthen its financial situation in the short term, although numerous analysts warn that they may not be enough to redesign its position in the market.
“Our income has not grown as expected and we have not yet fully taken advantage of emerging trends such as artificial intelligence. Our costs are too high and our margins too low,” said Intel CEO Pat Gelsinger.
On an adjusted basis, excluding special items, earnings were two cents per share, well below the 10 cents expected by analysts surveyed by FactSet, ABC News reports.
Intel shares reacted negatively to these announcements, falling as much as 19% in extended trading following last week’s announcement. So far this year, the company’s shares have lost 42% of their value, while the S&P 500 index has risen almost 14%, according to CNBC data.
Intel has been operating in Costa Rica since 1997 and currently employs more than 2,000 people.
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