Intel is planning to lay off thousands of employees to cut costs and offset its declining market share with falling revenue forecasts. The company’s move is one of its survival strategies in the face of tough competition and economic uncertainty in the industry.
According to Bloomberg, Intel could make an announcement about layoffs in the coming days. Sources inside the company say the decision will be made official soon. Intel, which has about 110,000 employees, will report its latest quarterly results tomorrow. Last quarter, the company generated $12.7 billion in revenue, up 9 percent year-on-year. However, this growth is not expected to continue.
Under the leadership of Intel CEO Pat Gelsinger, the company has been investing heavily in research and development (R&D). These investments are seen as part of the company’s effort to regain lost market share in the semiconductor industry. Under increasing pressure from competitors such as AMD and Nvidia, Intel aims to accelerate its technology development processes.
Intel’s manufacturing strategies and new appointments
One of Intel’s recent significant moves was the transfer of Naga Chandrasekaran from Micron Technology to manage its manufacturing operations. This appointment reflects the company’s emphasis on manufacturing processes and its desire to be more effective in this area.
The company’s estimated market value currently stands at around $128.26 billion, just over half of AMD’s $223.76 billion market value, while Nvidia has risen to the third most valuable company worldwide, with a market value of $2.551 trillion, driven by rapidly growing interest in artificial intelligence (AI).
Analysts expect Intel to report relatively flat earnings this quarter compared to last year, but there are hopes for some signs of growth later in the year. The company is said to be expecting to post its first annual revenue increase since 2021 when it reports its fiscal year results in about six months.
If the layoffs do happen, it would be Intel’s first layoff of this scale in a year. While global tech layoffs have slowed compared to 2023, there are still about 110,000 jobs lost this year, according to data from layoffs.fyi.
In light of these developments, it is eagerly awaited what path Intel will follow in the future and how effective its cost reduction strategies will be. The company’s R&D investments and new production strategies are drawing attention as part of its efforts to strengthen its position in the semiconductor market.
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