Intel announces plans to cut more than 15,000 jobs

In a huge blow to the tech industry that sent global markets reeling, Intel has announced plans to cut more than 15,000 jobs.

Intel has announced plans to cut more than 15,000 jobs.

The move is a bid to rejuvenate its business and keep pace with competitors – but has lead to shares in the tech titan plummeting by up to 20% following the announcement and the report of declining sales.

Japanese tech firms were among the hardest hit, and the Nikkei ended the day down 2,216.63 points at 35,909.70.

Worries over the US economy also contributed to the market downturn, fuelled by a grim audit of American manufacturing firms and forecasts of more job losses.

Amazon’s shares fell more than 4 per cent after reporting a 10 per cent rise in sales to $148 billion, a slowdown from the previous quarter, with predictions of more weakness in the markets.

Intel has faced mounting challenges as businesses increasingly turn to rivals such as Nvidia for their AI chip needs.

The company reported a 1 per cent year-on-year drop in sales for the three months to June and warned of a worse-than-expected second half.

CEO Pat Gelsinger said: “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI.”

He also emphasised the need for “bolder actions” and a fundamental change in operations.

Intel has now cut investment plans and suspended dividend payments.

Lucy Coutts from investment director at JM Finn said: “It’s really having to pull back on spending on its data centres and it’s struggling to take market from other providers, so it’s a real shock to the market.”

Meanwhile, Apple reported a rebound in sales despite challenges in China and a dip in iPhone sales.

Its revenues for the three months to June were $85.8 billion, marking a 5 per cent year-on-year increase and a return to growth after an early 2024 slump.

Apple’s AI-powered software improvements have driven customer upgrades, with CEO Tim Cook stating: “We remain incredibly optimistic about the possibilities of AI and we will continue to make significant investments in this technology.”

Despite a 1 per cent drop in iPhone sales, increases in those of Macs and iPads and a record revenue from its services division, including Apple Pay and Apple News bolstered Apple’s performance.