Intel planning thousands of layoffs in cost-saving move: Report

The tech giant likely wants to use the funds saved to invest in overcoming a recent slump in its share price and to market share losses to competitors including AMD

Intel is looking to eliminate thousands of jobs as a way to cut costs and fund plans to recover from market share loss and reduced earnings, Bloomberg reports.

The plan comes as California-based Intel plans to report its second fiscal quarter 2024 financial on this week.

Intel as of December 2023 has 124,800 employees, down year-over-year from 131,000 employees working in 65 countries worldwide. Bloomberg reported that the company has about 110,000 employees when those who work at units the company is spinning out are excluded.

Intel, in response to a CRN request for more information, said that it is not commenting at this time.

Bloomberg, citing unnamed people familiar with the company's plans, said the planned layoffs are aimed at funding "an ambitious effort to rebound from an earnings slump and market share losses."

Intel has been facing financial headwinds that have caused its share prices to fall significantly so far this year. Intel's stock Tuesday closed at $30.13 per share, down 2.27 per cent for the trading day and down 36.5 per cent since its January 2 close of $47.47 per share.

Intel reported that its 2023 revenue was $54.2bn, down $8.8bn, or 14 per cent, from 2022.

Intel early this month unveiled the second leadership shakeup for 2024 in its Intel Foundry, bringing in two outsiders to oversee a crucial aspect of Intel CEO Pat Gelsinger's comeback plan.

Micron Technology executive Naga Chandrasekaran in July was tapped to succeed 29-year Intel veteran Keyvan Esfarjani as the leader of the company's worldwide manufacturing operations, and Marvell Technologies executive Kevin O'Buckley in May was tapped to hand that organisation's customer service and ecosystem operations.

Intel in April confirmed an unspecified number of layoffs in its Sales and Marketing Group as part of a reorganisation.

Bloomberg reported that Intel CEO Pat Gelsinger is investing heavily in R&D to enable the company to return to its previous semiconductor industry prominence after rivals including AMD have taken a larger share of the market.

David Harris contributed to this report.