Intel plans to cut thousands of jobs to finance recovery, Bloomberg News reports
The Hindu
Intel is planning to layoff thousands of their employees as cost cutting measures as their market share has been dwindling in the AI chip market.
Intel plans to cut thousands of jobs to finance a recovery and cope with eroding market share, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Shares of the chipmaker, which is set to report quarterly results on Thursday, were up about 1% in extended trading. The stock has slumped 40% so far this year.
Intel declined to comment on the report when contacted by Reuters.
The U.S chipmaker remains a major player in the personal computer and server markets, but has struggled to keep pace with the growing demand for chips used in AI applications.
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CEO Pat Gelsinger has initiated a turnaround to regain the company's competitive edge, focusing on revitalizing its manufacturing capabilities, investing in advanced chip technologies, and expanding into new markets.
In October 2022, Intel announced a cost-reduction plan that included "people actions", aimed at slashing annual costs by $3 billion in 2023, reducing the chipmaker's headcount to 124,800 at the end of 2023 from 131,900 a year earlier, according to regulatory filings.