Image Source: PexelsIntel Corp. (INTC) is expected to announce major job cuts in the coming days, with a view to cutting its cost base and regaining its position as the world’s largest chipmaker. According to anonymous sources reported by Bloomberg, the layoffs will be announced as early as this week. Here are the key details:
Reason for Layoffs
In recent years, Intel has been losing market share to competitors as its earnings and revenue decline. The job cuts are part of a bold plan to tackle these challenges. In chip technology, competitors such as Taiwan Semiconductor Manufacturing Co. have beaten Intel, particularly in the AI-RELATED segment.
Company Background
Intel was once a major player in the semiconductor industry. However, its fortunes have fallen due to increased competition from companies like Advanced Micro Devices Inc.
CEO’s Strategy
Under Pat Gelsinger’s leadership, Intel has made considerable investments in R&D to gain a better competitive advantage. In addition, Intel has set up new chip factories in the US, Europe, and Israel to produce semiconductors for other chip makers.
Impact on Employees
Thousands of workers around the world are going to be affected by these layoffs. Intel laid off more than 300 employees in California earlier this year, affecting roles related to GPUs, cloud computing, and AI computing.
Market Response
Intel shares rose slightly in reaction to this news, although the company has not commented officially. Intel has been challenged to keep up with rivals such as Nvidia Corp., which has excelled in developing AI chips.More By This Author:US Markets Suffer Worst Day Since 2022 As Tesla And AI Stocks Fall
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