Intel to slash 15,000 jobs amid struggles to keep up with Nvidia and AMD

US chip maker to cut 15 percent of workforce as part of efforts to cut costs by $10bn in 2025.

Chipmaker Intel has announced plans to slash more than 15 percent of its workforce as it tries to make up ground on rivals such as Nvidia and AMD.

Under the restructuring plan announced on Thursday, the California-based company will shed about 15,000 jobs as part of efforts to cut costs by $10bn in 2025.

The move comes after the company reported a $1.6bn loss in the April-June period, compared with a profit of $1.5bn a year earlier.

Revenue declined 1 percent to $12.8bn, while forecasted revenue of between $12.5bn and $13.5bn for the July-September period fell short of analysts’ expectations.

“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” Intel Corp CEO Pat Gelsinger said in a memo to staff.

Intel shares plunged 20 percent in extended trading, putting the chipmaker on course to lose more than $24bn in value when the stock market reopens on Friday.

Once a market leader for chips used in everything from laptops to data centres, Intel has struggled to keep pace with Nvidia and AMD amid the boom in artificial intelligence (AI).