Trends
Intel cuts thousands of jobs to help finance recovery
OUR TAKE Intel remains a major player in the PC and server markets, but has struggled to keep up with growing demand for chips used in artificial intelligence applications. CEO Pat Gelsinger has launched a turnaround plan to regain the company’s competitive edge, focusing on reinvigorating its manuf…
Headline
OUR TAKE Intel remains a major player in the PC and server markets, but has struggled to keep up with growing demand for chips used in artificial intelligence applications. CEO Pat Gelsinger has launched a turnaround plan to regain the company’s competitive edge, focusing on…
Context
OUR TAKE Intel remains a major player in the PC and server markets, but has struggled to keep up with growing demand for chips used in artificial intelligence applications. CEO Pat Gelsinger has launched a turnaround plan to regain the company’s competitive edge, focusing on reinvigorating its manufacturing capabilities, investing in advanced chip technology, and expanding into new markets. –Zora Lin, BTW reporter Intel plans to cut thousands of jobs to fund its recovery and combat a decline in market share, Bloomberg reported on Tuesday. The chipmaker, which reports quarterly results on Thursday, has seen its shares fall 40 percent so far this year.
Evidence
Pending intelligence enrichment.
Analysis
In October 2022, Intel announced a cost-cutting plan that included “people actions” to reduce its workforce from 131,900 a year earlier to 124,800 by the end of 2023, according to regulatory filings. The company said in February last year that the plan was expected to save $8 billion to $10 billion in annual costs by 2025. According to LSEG, analysts expect the company’s second-quarter revenue to be flat from a year ago, with its data center and artificial intelligence business down 23 percent. Also read: Intel confirms 13th/14th generation processor stability issues
Key Points
- Chipmaker Intel, which reports quarterly results on Thursday, has seen its shares fall 40 percent so far this year.
- Intel’s cost-cutting plan, which includes layoffs, is expected to save $8 billion to $10 billion by 2025.
Actions
Pending intelligence enrichment.
