Another round of layoffs reportedly on the cards for staff at Intel, in an effort to rebound from earnings slump
Intel is report about to hand down some bad news for its 110,000 employees when it reports its second quarter earnings this week.
Bloomberg reported that Intel plans to eliminate thousands of jobs to reduce costs and fund an ambitious effort to rebound from an earnings slump and market share losses.
It comes after Intel laid off roughly 5 percent of its workforce in 2023, after a previous round of job cuts in October 2022.
Intel layoffs
The upcoming Intel job losses, according to Bloomberg, are part of an ambitious recovery effort by CEO Gelsinger, as the chip giant continues to heavily spend on research, development and new plants.
According to the media report, which cited people familiar with the company’s plans, Intel’s workforce reduction may be announced as early as this week.
Intel is scheduled to report second-quarter earnings Thursday, and the move comes as the chip giant seeks satisfy demand for chips suitable for use in AI applications.
Pat Gelsinger has already implemented a turnaround plan to regain the company’s competitive edge, focusing on revitalising its manufacturing capabilities (including manufacturing chips for other companies), investing in advanced chip technologies, and expanding into new markets.
The move comes as analysts reportedly expect Intel to publish flat second quarter revenues, with the data centre and AI segments expected to post a 23 percent decline.
Israel plant
In June this year it was reported that Intel was halting construction of a $25 billion (£19.6bn) semiconductor plant in Israel.
The company neither confirmed nor denied the report at the time, but affirmed Israel as a key manufacturing and research and development site and the necessity in large projects of making “schedule adjustments”.
“Our decisions are based on business conditions, market dynamics, and responsible capital management,” the chip firm said in a statement in June.
Intel’s suppliers reportedly received notice that it would cancel contracts for the supply of equipment and materials for the plant, known as Fab 38.