Intel's traditional computing chip niche is being overshadowed by rivals in the AI sector. Photo / Getty Images
Intel's traditional computing chip niche is being overshadowed by rivals in the AI sector. Photo / Getty Images
Intel on Thursday posted quarterly revenue that topped market expectations, saying it has cut about 15% of its workforce to be “more agile”.
The US chip maker also said it “will no longer move forward” with projects in Germany and Poland as part of a push to save billions ofdollars.
The struggling chip maker’s earnings report came as rivals specialising in graphics processing units (GPUs) for artificial intelligence thrive because of rapid adoption of the technology.
Intel is one of Silicon Valley’s most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia as the world’s preeminent AI chip provider.
Intel’s niche has been in chips used in traditional computing processes, steadily being eclipsed by the AI revolution.
Intel reported US$12.9 billion ($21.3b) in sales in the recently ended quarter, topping forecasts, but logged a US$2.9 billion ($4.8b) loss that included $1.9 billion ($3.1b) in restructuring charges.
“Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent,” the company said in an earnings release.
