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Intel Layoffs: Thousands Of Jobs To Be Cut To Reduce Costs, Layoffs Expected This Week
Gelsinger is confident that the company can improve its technology and has launched a plan to build factories that will produce semiconductors for other chipmakers.
New Delhi: Intel is set to cut thousands of jobs as part of its efforts to recover financially and address its shrinking market share, according to a report by Bloomberg News. Despite this, shares of the company rose by 1 per cent. This comes as a small relief for Intel, whose shares have already fallen by 40 per cent this year.
When will Intel disclose the layoffs?
According to the report, Intel has not yet officially announced the layoffs. However, an announcement could come as early as this week. The company employs around 110,000 people, not counting those in divisions that are still being formed.
CEO Pat Gelsinger's Investment in R&D
Intel’s Chief Executive Officer, Pat Gelsinger is investing heavily in research and development. He aims at improving Intel’s technology and help company regain its leading position in the semiconductor industry.
What changes are happening at Intel?
Gelsinger is confident that the company can improve its technology and has launched a plan to build factories that will produce semiconductors for other chipmakers. To support this initiative, Intel recently hired Naga Chandrasekaran from Micron Technology Inc. as the new chief global operations officer. He will oversee the company's entire manufacturing operations.
Workforce Reduction and Cost-Saving Measures
Intel reduced its workforce by around 5 per cent in 2023 which brought down the number of employees down to 124,800 by the end of the year, following job cuts announced in October 2022. The company has also cut back on spending in other areas. These cost-saving measures are expected to save Intel up to 10 billion dollars by 2025.
Revenue Projections for 2024
Analysts predict that Intel’s second-quarter revenue will be the same as it was a year ago. However, they expect modest growth in the second half of 2024 with total sales increasing by 3 per cent to 55.7 billion dollars for the full year. This would mark Intel's first annual revenue increase since 2021, according to Wall Street estimates.