Intel is reportedly preparing to cut thousands of jobs in an effort to reduce costs and address poor revenue forecasts and declining market share.
TO Bloomberg The report said the layoffs could be announced within days, according to sources familiar with the plan cited by the publication.
Intel, which has about 110,000 employees, is scheduled to report its latest quarterly results tomorrow. The company earned $12.7 billion in revenue last quarter, up 9 percent from a year earlier, but that growth is not expected to continue.
Intel could lay off more workers
Under CEO Pat Gelsinger, Intel has been investing heavily in R&D to improve its technology in a bid to regain lost market share in the semiconductor industry, where it has faced increased pressure from companies like AMD and Nvidia in recent years.
Intel recently hired Naga Chandrasekaran from Micron Technology to oversee the company's manufacturing efforts, signaling a significant focus on that department.
Intel’s market cap is estimated at $128.26 billion, just over half that of AMD’s at $223.76 billion. Nvidia, helped by an accelerating interest in AI, now ranks as the third most valuable company in the world, with a market cap of $2.551 trillion.
Analysts now expect Intel to report broadly flat second-quarter revenue compared to a year ago, with some growth expected later in the year. The company expects its first annual revenue increase since 2021 when it reports its full-year fiscal year results in about six months.
If the layoffs go ahead, they could be the first of this scale for the company in more than a year. While layoffs in the tech sector have slowed globally compared to 2023, layoffs.fyi has recorded nearly 110,000 so far this year.
Intel declined to comment.
