Intel Plans Massive Job Cuts to Finance Recovery Amid Chip Market Challenges
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On Wed, 31 Jul, 8:01 AM UTC
5 Sources
5 Sources
[1]
Intel plans to cut thousands of jobs to finance recovery, Bloomberg News reports
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. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) 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. The plan was expected to provide annual cost savings between $8 billion and $10 billion by 2025, the company had said in February last year. Intel battles AMD with new data center chips Analysts expect the company's second-quarter revenue to be about the same as a year earlier, with data center and AI segment set to post a 23% decline, according to LSEG data. Intel, traditionally known for designing and manufacturing its own chips, has been making a concerted effort to expand into the foundry business, manufacturing chips for other companies. Investors expect a push to promote chip manufacturing in North America by the Biden administration to diversify supply chains and reduce reliance on Taiwan to boost Intel's prospects. Read Comments
[2]
Intel plans to cut thousands of jobs to finance recovery: Report
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. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) 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. The plan was expected to provide annual cost savings between $8 billion and $10 billion by 2025, the company had said in February last year. Intel battles AMD with new data center chips Analysts expect the company's second-quarter revenue to be about the same as a year earlier, with data center and AI segment set to post a 23% decline, according to LSEG data. Intel, traditionally known for designing and manufacturing its own chips, has been making a concerted effort to expand into the foundry business, manufacturing chips for other companies. Investors expect a push to promote chip manufacturing in North America by the Biden administration to diversify supply chains and reduce reliance on Taiwan to boost Intel's prospects. Read Comments
[3]
Intel plans to cut thousands of jobs to finance recovery, Bloomberg News reports
July 30 (Reuters) - 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. 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. The plan was expected to provide annual cost savings between $8 billion and $10 billion by 2025, the company had said in February last year. Analysts expect the company's second-quarter revenue to be about the same as a year earlier, with data center and AI segment set to post a 23% decline, according to LSEG data. Intel, traditionally known for designing and manufacturing its own chips, has been making a concerted effort to expand into the foundry business, manufacturing chips for other companies. Investors expect a push to promote chip manufacturing in North America by the Biden administration to diversify supply chains and reduce reliance on Taiwan to boost Intel's prospects. (Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)
[4]
Intel plans to cut thousands of jobs to finance recovery
Intel is planning to cut thousands of jobs as part of a cost-reduction strategy to address declining market share. The company aims to save up to $10 billion annually by 2025 and is focusing on advanced chip technologies and expanding into the foundry business. The stock saw a slight increase despite a 40% slump this year.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. 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. The plan was expected to provide annual cost savings between $8 billion and $10 billion by 2025, the company had said in February last year. Analysts expect the company's second-quarter revenue to be about the same as a year earlier, with data center and AI segment set to post a 23% decline, according to LSEG data. Intel, traditionally known for designing and manufacturing its own chips, has been making a concerted effort to expand into the foundry business, manufacturing chips for other companies. Investors expect a push to promote chip manufacturing in North America by the Biden administration to diversify supply chains and reduce reliance on Taiwan to boost Intel's prospects.
[5]
Intel plans to cut thousands of jobs to finance recovery, Bloomberg News reports
Intel declined to comment on the report when contacted by Reuters. The U.S chipmaker remains a major player in the PC and server markets, but has struggled to keep pace with the growing demand for chips used in AI applications. CEO Pat Gelsinger has initiated a turnaround to regain its competitive edge, focusing on revitalizing Intel's manufacturing capabilities, investing in advanced chip technologies, and expanding into new markets. Intel's total employee count was 124,800 at the end of 2023, based on a regulatory filing. (Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)
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Intel Corporation is reportedly planning to lay off thousands of employees as part of its cost-cutting measures to finance its recovery in the competitive chip market. The move comes as the company faces challenges in various business segments.
Intel's Workforce Reduction Strategy
Intel Corporation, one of the world's largest chipmakers, is reportedly planning to cut thousands of jobs as part of its efforts to reduce costs and finance its recovery in the highly competitive semiconductor market 1. The company, which employs approximately 131,000 people globally, is facing challenges across various business segments and is looking to streamline its operations to improve financial performance 2.
Timing and Scale of Layoffs
While the exact number of job cuts has not been disclosed, sources familiar with the matter suggest that the layoffs could be announced as early as this month 3. The reductions are expected to affect various departments across the company, including the sales and marketing group, which could see its workforce reduced by up to 20% 4.
Financial Context and Market Challenges
Intel's decision to reduce its workforce comes in the wake of a challenging financial period for the company. In October, Intel announced plans to cut costs by $3 billion in 2023, with the aim of reaching annual savings of $8 billion to $10 billion by the end of 2025 1. The company has been grappling with a slump in the personal computer market and facing intense competition from rivals such as Advanced Micro Devices Inc. (AMD) in the server chip market 2.
Impact on Intel's Business Segments
The planned job cuts are expected to affect multiple areas of Intel's business. The company's data center and artificial intelligence business has been particularly challenged, with a 38% decline in revenue reported for the third quarter 3. Additionally, Intel's client computing group, which includes its PC chip business, has seen a 17% drop in revenue 4.
Industry-wide Trends and Competitive Landscape
Intel's workforce reduction plans reflect broader trends in the technology industry, where many companies are implementing cost-cutting measures in response to economic uncertainties and shifting market dynamics. The semiconductor industry, in particular, has been facing challenges due to supply chain disruptions, geopolitical tensions, and fluctuating demand in key markets such as personal computers and smartphones 5.
Company Response and Future Outlook
Intel has not officially commented on the reported job cuts. However, the company has previously stated its commitment to reducing costs and improving efficiency to navigate the current market challenges. As Intel continues to invest in new technologies and manufacturing capabilities, these workforce reductions are seen as a necessary step to realign resources and position the company for future growth in the highly competitive chip market 1.
Reference
[4]
Intel Prepares for Massive Layoffs Amid CPU Scandal and Technological Shifts
Intel, the tech giant, is reportedly planning to cut thousands of jobs as it grapples with a deepening CPU scandal and shifts focus towards technological advancements. This move comes as part of the company's ongoing restructuring efforts and cost-cutting measures.
8 Sources
8 Sources
Intel Announces Massive Layoffs: 15,000 Jobs to be Cut Amid Financial Struggles
Intel, the world's largest chipmaker, has unveiled plans to cut approximately 15,000 jobs globally. This decision comes as part of a cost-saving initiative following poor financial performance in 2024.
7 Sources
7 Sources
Intel Announces Massive Layoffs: 15,000 Jobs Cut Amid Tech Industry Downturn
Intel, the semiconductor giant, plans to cut 15,000 jobs in one of the largest tech layoffs since the COVID-19 pandemic. This move comes after a 20% stock drop and follows the ongoing trend of mass layoffs in the tech industry.
3 Sources
3 Sources
Intel Faces Challenges: Revenue Shortfall, Job Cuts, and Strategic Shifts
Intel, the semiconductor giant, is grappling with revenue shortfalls, job cuts, and strategic shifts in its business model. The company's struggles in the data center CPU market and foundry services have led to significant financial losses and a reevaluation of its future direction.
4 Sources
4 Sources
Intel Announces Major Restructuring: 15,000 Jobs Cut in Bid to Save $10 Billion by 2025
Intel, the tech giant, has announced a significant restructuring plan that includes cutting 15,000 jobs. This move is part of a broader strategy to save $10 billion by 2025 and position the company for future growth.
2 Sources
2 Sources
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