Intel is reportedly preparing to cut thousands of jobs in an effort to cut costs and address poor revenue forecasts and declining market share.
a Bloomberg According to sources familiar with the plan cited in the publication, the report claims the layoffs could be announced within days.
Intel, which has about 110,000 employees, is scheduled to report its latest quarterly results tomorrow. Last quarter, the company brought in $12.7 billion in revenue, up 9% year over year, but that same growth is not expected to continue.
Intel may lay off more workers
Under CEO Pat Gelsinger, Intel is investing heavily in R&D to improve its technology. The company hopes to regain lost market share in the semiconductor industry, where it has faced increasing pressure from companies such as AMD and Nvidia in recent years.
Intel recently hired Naga Chandrasekaran from Micron Technology to oversee the company’s manufacturing operations, indicating a significant focus on that department.
Intel has an estimated market cap of $128.26 billion, just slightly higher than AMD’s half, at $223.76 billion. Nvidia, with the help of a booming interest in AI, is now the world’s third most valuable company, with a market cap of $2.551 trillion.
Analysts now expect Intel to report broadly flat revenue in the second quarter compared to the prior year, with some growth expected later in the year. The company is hoping for its first annual revenue growth since 2021 when it reports its full fiscal year results in about six months.
If the layoffs go ahead, they could be the first of their size for the company in more than a year. While tech layoffs have slowed globally compared to 2023, fired.fyi has still followed almost 110,000 people so far this year.
Intel declined to comment.