New Delhi: American chip maker Intel is going to lay off 15 percent of its employees. Intel reported a loss of $1.6 billion in the June quarter. Now the company's aim is to reduce its losses and streamline its operations. This is the reason why Intel has planned to reduce its expenses by about $20 billion this year. Layoffs of employees are also a part of this plan.

What did Intel say about losses and layoffs?

Intel's Chief Financial Officer David Zinsner said that the company is expanding its artificial intelligence PC product. But, there are some problems in it. Also, there are many employees who are being used in the manufacturing of products with new technology. This had a bad effect on our second quarter income. Zinsner said, "We are taking active steps to improve profitability and strengthen our balance sheet by reducing our expenses."

How many employees will Intel lay off?

Intel had reported at the end of last year that it had 1,24,800 employees. This means that the company can lay off about 18,000 of its employees. Intel also stopped the expansion of a major factory project in Israel in June. An additional $ 15 billion was to be invested in the chip plant. Its aim was also to reduce expenses.

Intel has announced the layoffs at a time when it is facing tough challenges from rival companies like Nvidia, AMD and Qualcomm. It has also introduced some technologies that it claims will lead the artificial intelligence revolution.

Troubles are mounting for Intel

Intel dominated the chip market for many decades. Be it laptops or data centers. But, in the last few years, Intel's competitors have overtaken it, especially in the case of AI processors. The biggest name among them is Nvidia, whose shares also remained in the news due to multibagger returns.

However, Intel expressed confidence that it will be able to regain dominance in the chip market with its innovation. Intel cited the Boston Consulting Group as saying that AI computers are expected to account for 80 percent of the PC market by 2028.

The company said, 'Innovations taking place in the world of computing will pave the way for progress. They will push the boundaries of human capability and power the global economy in the years to come.'