Intel CEO Pat Gelsinger has told his staff that the company plans to lay off as many as 15,000 workers, or 15 percent of its total workforce, in a bid to save $10 billion as strong tech rivals like AMD and Nvidia push the weak brand to its limits.

Gelsinger provided more detail about the company’s intentions following the layoffs in a public memo published on August 1. He noted that the company is aware that this news will hurt the thousands of people it will lay off to cut costs by 2025. The layoffs are partly a result of Intel and other companies betting big on emerging technology trends like artificial intelligence but not seeing the results they expected.

There are other factors that have determined Intel’s fate, with a CNN report suggesting that Intel made a mistake by not investing in the mobile wave that has propelled other tech companies. Intel’s profits fell by a point last quarter, while the August 1 layoffs and restructuring sent the stock market into turmoil, with the tech giant falling 33 percent in a single day, according to MarketWatch.

Gelsinger highlighted the costs that Intel has incurred as such a large company, stating that it earned $24 billion more in 2020 than it does now, adding that its workforce is now 10 percent larger than it was then. He also said that the company's current goal is to take "bolder actions" that will drive growth while keeping the company lean. "There's too much complexity, so we need to both automate and simplify processes. Decisions take too long to make, so we need to eliminate bureaucracy. And there's too much inefficiency in the system, so we need to speed up workflows," he said.