Intel Layoffs: Intel reportedly plans to cut thousands of jobs as part of a cost-cutting strategy to support the critical initiative of recovering from recent earnings declines and market share losses. These layoffs are likely to be announced this week, according to a Bloomberg report citing sources.
The tech firm currently employs approximately 110,000 people, excluding those at units being spun off, as per the report.
Intel’s Chief Executive Officer Pat Gelsinger is investing heavily in research and development to improve the firm’s technology and restore its leading position in the semiconductor industry. Under Gelsinger’s predecessors, the company’s previous dominance faded as competitors like Advanced Micro Devices Inc. gained ground and captured market share.
Meanwhile, other chipmakers, notably Nvidia Corp., have moved ahead in developing high-value semiconductors designed according to the demand of artificial intelligence applications. On the other hand, Intel is facing challenges with the fluctuating demand for chips used in laptops and desktop computers, which remain its core business.
However, Gelsinger is confident about Intel’s potential to enhance its technology, so it launched a strategy to build factories to manufacture semiconductors for other chipmakers.
Last week, Intel appointed Naga Chandrasekaran from Micron Technology as its Chief Global Operations Officer. He will oversee the company’s entire manufacturing operations.
In 2023, Intel reduced its workforce by about 5 per cent, bringing it to 124,800 by year’s end, following job cut announcements starting in October 2022. The company also reduced spending in other areas, thinking that these cost reductions could save up to $10 billion by 2025.
According to the report, analysts forecast that Intel’s second-quarter revenue will be flat compared to the previous year. They expect modest growth in the second half of 2024, with sales rising by 3 per cent to $55.7 billion for the entire year.
This would mark Intel’s first annual revenue increase since 2021, as per Wall Street estimates.
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