Money-Losing Intel Grounds Corporate Air Shuttle Fleet

The tech giant posted a $1.6 billion net loss in the second quarter.

Ryan Ewing

Monday, August 05, 2024 at 04:29 PM ET

Verified

Edited By:

Kimberly Johnson

An Intel Air Shuttle aircraft [Shutterstock/ Sundry Photography]

Key Takeaways:

Intel is permanently grounding its "Intel Air" corporate shuttle fleet of four Embraer jets, used to transport employees between its West Coast facilities.
This aggressive cost-cutting measure follows dismal second-quarter earnings, a bleak forecast, and an announcement of 15% workforce layoffs.
The company's human resources chief stated they can no longer afford benefits and programs that are "above market practice."
The shuttle service had only recently resumed operations in April 2024, after a year-long pause also implemented for cost-cutting purposes.

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Following dismal second-quarter earnings and a bleak forecast, Intel is grounding its fleet of four Embraer jets. The move comes after the company announced aggressive cost-cutting measures, including layoffs for 15 percent of its workforce.

The Santa Clara, California-based company has operated a corporate shuttle for decades, which moves employees through its various West Coast facilities. Commonly referred to as “Intel Air,” the aircraft fly on regular schedules with up to 24 flights per day before the COVID-19 pandemic.