Intel allegedly plans imminent lay off of employees to fuel turnaround
Intel plans to lay off thousands of employees to cut costs and enhance R&D efforts amid financial struggles and market share losses, with an announcement expected soon.
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Intel is reportedly planning to lay off thousands of employees as part of a strategy to cut costs and support its research and development efforts aimed at reversing recent financial struggles and market share losses. Sources indicate that an announcement regarding these layoffs could be made within days. Intel's CEO, Pat Gelsinger, has been investing heavily in R&D to enhance the company's technology and regain its competitive edge against rivals like AMD and Nvidia. Currently, Intel employs around 110,000 people, and the last significant workforce reduction occurred in late 2022, when about 5% of employees were laid off.
The company is facing challenges in key technology areas, with AMD gaining ground in the CPU market and Nvidia leading in AI-related semiconductor development. Gelsinger is also working on plans to establish factories for manufacturing semiconductors for other companies. Intel is set to report its second-quarter earnings soon, with analysts predicting flat revenue compared to the previous year. Despite this, there are expectations for modest sales growth in the latter half of 2024, marking the first annual revenue increase since 2021. The potential layoffs may be viewed positively by investors if they are seen as a necessary step for Intel's future, which could influence the company's stock performance even amid flat earnings. Intel declined to comment on the layoff reports when approached.
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