Intel is reportedly preparing to cut thousands of jobs in an effort to reduce costs and tackle poor revenue predictions and decreased market share.
A Bloomberg report claims the layoffs could be announced within days, according to sources familiar with the plan cited by the publication.
Intel, which has approximately 110,000 employees, is set to report its most recent quarterly earnings tomorrow. Last quarter, the company drew in $12.7 billion in revenue, up 9% year-over-year, but that same growth is not expected to continue.
Intel may lay off more workers
Under the leadership of CEO Pat Gelsinger, Intel has been heavily investing in R&D to enhance its technology, in a bid to regain lost market share in the semiconductor industry, where it has faced increased pressure from the likes of AMD and Nvidia in recent years.
Intel recently hired Naga Chandrasekaran from Micron Technology to oversee the company’s manufacturing efforts, indicating significant focus in that department.
Intel has an estimated market cap of $128.26 billion, only a touch higher than half of AMD’s, at $223.76 billion. Nvidia, with the help of rapidly accelerated interest in AI, now stands as the world’s third-most valuable company, with a market cap of $2.551 trillion.
Analysts are now expecting that Intel will report fairly flat second-quarter revenue compared with the previous year, with some growth anticipated later in the year. The company hopes for its first annual revenue increase since 2021 when it reports its full fiscal year results in around six months time.
If the layoffs go ahead, they could be the first of this scale for the company in more than a year. While tech layoffs have slowed down globally compared with 2023, layoffs.fyi has still tracked nearly 110,000 this year to date.
Intel declined to comment.
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