Computer components designer and manufacturer Intel Corp. is set to play off thousands of workers in a continued attempt to cut its costs, according to a recent report by Bloomberg.
Intel has been struggling to keep up with the evolving semiconductor market that is increasingly leaning towards artificial intelligence (AI) chips. Meanwhile, its competitors like Nvidia and Advanced Micro Devices (AMD) have been taking over its market share. As a result, Intel experienced slumping earnings that have eroded its stock by 35.97% year-to-date.
The company is now reportedly on a mission to improve its business, with job cuts being the first step towards recovery. It plans to increase its investment in developing new technology while also upgrading its manufacturing capabilities and entering new markets.
The job cuts are expected to be officially announced at some point this week when the full scope of layoffs will be revealed. Intel currently has 110,000 workers after several rounds of layoffs in 2022 and 2023 as part of the previous cost-cutting strategy that is projected to save the company $10 billion through 2025.
Intel’s stock inched up slightly on Wednesday compared to its previous closing price of $30.13 per share after Bloomberg’s report.