Intel (INTC) plans to reduce headcount by 16,500 employees

Intel (NASDAQ: INTC) disclosed:

Item 2.05 Costs Associated with Exit or Disposal Activities.
On October 28, 2024, the Audit & Finance Committee (the “Audit Committee”) of the board of directors (the “Board”) of Intel, in connection with the Company's management team, approved a series of cost and capital reduction initiatives designed to adjust spending to current business trends while enabling Intel's new operating model and continuing to fund investments in Intel's core strategy - returning to process leadership. These initiatives include reducing headcount by 16,500 employees, consolidating and reducing the Company's global real estate footprint, conducting portfolio reviews of the Company's business under a 'clean sheet' view, rationalizing capital investments and deployments based upon demand signals and capacity requirements, and reducing the Company's overall operating expenses. The Company expects to recognize $3.0 billion of restructuring charges related to these actions, of which the Company is recognizing $2.8 billion in the third quarter of 2024. The restructuring actions, which are expected to be substantially complete by the fourth quarter of 2025, consist primarily of the following:
• Headcount reductions: In connection with the headcount reductions, the Company is recognizing pre-tax employee severance and related employee exit charges of $2.2 billion in the third quarter of 2024, substantially all of which will entail future cash expenditures.
• Internal test equipment manufacturing exit: In connection with the Company’s decision to exit and outsource manufacturing capabilities for internal-use test hardware, the Company is recognizing pre-tax impairment charges of $442 million in the third quarter of 2024 for certain construction in progress assets, none of which entails future cash expenditures.
• Real estate exits: In connection with the Company's real estate consolidation and exits, the Company expects to recognize pre-tax charges of $307 million related to certain owned and operating leased assets and related leasehold improvements, substantially all of which entails future cash expenditures. The Company is recognizing $86 million of non-cash impairments for operating leased assets and related leasehold improvements in the third quarter of 2024.

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