Intel plans to cut its workforce by thousands as part of a strategic move to cut costs and channel funds to restore its market position. Bloomberg reported with source reference.
The layoffs, which could be announced soon, are a response to recent profit declines and loss of market share.
With a current workforce of approximately 110,000 employees (excluding spin-off units), the company faces the challenge of regaining its once dominant position in the semiconductor industry.
Intel CEO Pat Gelsinger has made significant investments in research and development to enhance the company’s technological capabilities.
This drive for innovation is critical as Intel competes with rivals such as Advanced Micro Devices (AMD), which have taken a significant portion of Intel’s market share.
An Intel spokesperson declined to comment on the report.
Intel’s actions also reflect the urgency to address challenges from other chipmakers, particularly Nvidia, which excels in producing highly sought-after semiconductors focused on artificial intelligence, the report said.
The company’s main source of revenue, chips for laptops and desktop computers, also experiences fluctuating demand.
Gelsinger’s strategy includes not only technological advancements, but also an expansion into the production of semiconductors for other companies.
This shift is underscored by the recent appointment of Naga Chandrasekaran, formerly of Micron Technology, as Intel’s Chief Global Operations Officer, overseeing the company’s manufacturing operations.
Intel has already taken steps to streamline its operations, reducing its workforce by about 5% to 124,800 by the end of 2023. It has also implemented cost-cutting measures that are expected to save up to $10 billion by 2025.
In June, Intel entered into an agreement with Apollo Global Management to sell a 49% stake in a joint venture related to its Fab 34 facility in Ireland.
The deal, valued at $11 billion, represents a strategic partnership for Intel’s large-scale manufacturing facility in Leixlip, Ireland, as the company strives to recover and grow.
“Intel lays off thousands of people to cut costs, fund technology rebuild” was originally conceived and published by Verdict, a brand of GlobalData.
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