Jul 31, 2024 12:22 PM IST
Intel layoffs: The company has not officially announced the layoffs and may do so as early as this week, it was reported.
Intel is cutting thousands of jobs to finance a recovery and cope with eroding market share, Bloomberg News reported citing people in the know. Following the report, shares of the chipmaker were up about 1%. The stock has slumped 40% so far this year.
When will Intel announce the layoffs?
The company has not officially announced the layoffs and may do so as early as this week, the report claimed. Intel has about 110,000 employees, excluding workers at units that are still being made.
Why is Intel cutting jobs?
Intel Chief Executive Officer Pat Gelsinger aims to spend heavily on research and development aimed to improve Intel’s technology and make the company a leader in the semiconductor industry.
The company’s rivals, like Advanced Micro Devices, have caught up and taken market share in the sector. Chipmakers like Jensen Huang’s Nvidia Corp have also sprinted ahead in the development of semiconductors tailored for demanding artificial intelligence-related tasks.
What is going on at Intel?
Pat Gelsinger has also planned to build factories to manufacture semiconductors for other chipmakers. Intel hired Naga Chandrasekaran from Micron Technology Inc. as chief global operations officer last week.
Will Intel cut jobs in India as well?
It is likely that the company will cut jobs in India. This comes after Santhosh Viswanathan, Vice President & Managing Director, India Region, Intel, said in an interview, “Earlier this year, Intel elevated India to a separate geographical unit, highlighting the immense growth potential and exciting opportunities we see here. India hosts Intel’s largest design and engineering centres outside the US, with state-of-the-art facilities in Bengaluru and Hyderabad. These centres house 13,000 employees, contributing to Intel products globally.”
When did Intel see job cuts in the recent past?
Intel reduced its workforce about 5% in 2023 to 124,800 by year’s end as the company said that it expected those cost reductions would save as much as $10 billion by 2025.