Which major chipmaker announced 15,000 job cuts in 2024, the largest single layoff in the tech sector that year?

In 2024, the major chipmaker Intel announced a significant restructuring that included plans to cut approximately 15,000 jobs, representing about 15% of its global workforce. This substantial reduction in staff was reported as the largest single layoff in the tech sector since the COVID-19 pandemic. The decision came as Intel faced a challenging financial landscape, including declining revenues and a need to reduce costs by $10 billion by 2025.

Intel's CEO, Pat Gelsinger, emphasized that these were "hard but necessary decisions" to align the company's cost structure with its new operating model and adapt to evolving market conditions. The company, a long-standing leader in chip manufacturing, has been grappling with intense competition and struggles to keep pace in the rapidly growing market for artificial intelligence (AI) chips, where rivals like Nvidia and AMD have gained significant ground.

This strategic pivot is part of Intel's broader effort to regain its financial footing and enhance its market position. The company aims to become a "leaner, simpler, and more agile company" by streamlining operations, reducing expenses, and focusing on its IDM 2.0 strategy, which includes re-establishing process technology leadership and expanding manufacturing capacity. Despite receiving billions in federal and state subsidies to boost domestic semiconductor production, Intel's restructuring highlights the intense pressures and rapid shifts within the global technology industry.