Intel May Be Planning Major Job Cuts to Reduce Costs

• Intel Corp. reportedly plans to lay off several workers to reduce its expenditures as it struggles with falling revenue.
• The company currently employs approximately 110,000 people and will likely confirm the cuts in the coming week during its scheduled second-quarter earnings announcement.

Following Microsoft’s recent wave of layoffs, another tech giant is set to announce major job cuts soon. Leading tech companies are increasingly pushing to reduce redundancy and support efficiency instead of keeping up with changes in the economic landscape. Intel is reportedly set to announce a new round of layoffs that will likely impact thousands of its workers, focusing on strategic investments and tech development.

Intel’s decision is considered part of a broader strategy to cut costs while encouraging a turnaround as the company continues struggling with market share losses and a fall in earnings. Intel has an estimated market cap of $128.26 billion, while AMD’s is at $223.76 billion. NVIDIA, supported by the global interest in AI, has become the world’s third-most valuable company, at $2.551 trillion.

The layoffs will likely affect multiple departments, including manufacturing, research and development, and other operational units. According to CEO Pat Gelsinger, the company is pushing to bolster its tech capabilities to regain a leadership position in the chip manufacturing sector.

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Intel’s layoff announcement is expected to coincide with its second-quarter earnings report next week. The company employs around 110,000 workers and is expected to save up to $10 billion by 2025 with such cost-saving measures. The company share values rose by 1% following the report.

If the layoffs go through, they will follow another significant cut in 2023, when the chip manufacturer shed around 5% of its workforce. While the company is set to cut its workforce yet again, it has been investing its resources in R&D and constructing new semiconductor production plants to keep up with its future growth strategies. This will help it regain its edge against competitors like AMD and NVIDIA. Whether the tech industry continues its trend of layoffs in the coming months remains to be seen.

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