Intel to layoff thousands of employees in latest round of cutbacks
According to a Bloomberg report, the chip company could present the plan as early as this week.
Intel is planning substantial job cuts, aiming to reduce costs and free up budgets for the company's recovery and revitalization efforts, according to a Bloomberg report based on anonymous sources familiar with the matter. These sources indicated that the company might present the plan as early as this week.
A spokesperson for the company declined to comment on the report.
In recent years, Intel has suffered from declining revenues and loss of market share and is struggling to provide a satisfactory response to Nvidia's popular artificial intelligence (AI) chips. Under CEO Pat Gelsinger, Intel is trying to restore its position through massive investments in research and development and building its foundry activity, which involves manufacturing chips developed by other companies—a move that could turn Nvidia from a competitor into a customer.
These initiatives require investments of tens of billions of dollars, partly to build new and advanced production plants. Now, according to Bloomberg, Intel is planning an extensive round of layoffs to free up additional capital for these investments.
Related articles:
Currently, Intel employs 110,000 people, not including employees of units that are in the spin-off process. Between October 2022 and the end of 2023, Intel made cuts amounting to 5% of its workforce, which previously numbered 124,800 people—a move the company estimates will save $10 billion by 2025.
Intel is expected to publish its second-quarter report for 2024 on Thursday. According to analysts, revenues will be similar to those of the corresponding quarter last year. However, for the second half of the year, analysts expect a modest increase of 3% to $55.7 billion, marking the first time since 2021 that Intel will report an increase in revenue.
Intel is the largest private employer in high-tech in Israel with over 11,000 local employees.
