Intel To Slash Workforce By The Thousands To Regain Income Slump

Intel may have found a way to rebound from a slump in earnings and losses from its market shares, and the planned method may not exactly be labor-friendly.

Bloomberg reported that the tech giant is planning to cut its workforce by the thousands to achieve that rebound from its losses, according to a source who wished not to be identified.

Sources who were familiar with the company's plans but who remained anonymous said the planned reduction of its workforce may be made this week. This would coincide with the scheduled second-quarter earnings report of the company, which has approximately 110,000 employees.

The company wants to regain its name in the semiconductor industry. Intel used to enjoy being the leading manufacturer of semiconductors, but it did not last long enough. The company's rivals like Advanced Micro Devices have grown considerably and have caught up with the perceived leader in the market.

Intel has declined to comment on the subject, but Chief Executive Officer of Intel Pat Gelsinger believes the company can improve its technology. He spearheaded a plan for the construction of factories that will be manufacturing semiconductors, not for its use, but for other chipmakers.

A rival of Intel, Nvidia Corp., has already jumped ahead in terms of developing semiconductors to cater to the demand for artificial intelligence.

Intel has hired Naga Chandrasekaran from Micron Technology Inc., and put him as the as the chief global operations officer. It already started reducing its workforce in 2023 and has slowed down its spending.

According to analysts, it projects that Intel will be reporting that the revenue for the second-quarter was flat, as compared to a year earlier. Wall Street also gave an estimate on Intel's sales, saying that it could increase modestly in the second-half of 2024. It also projected that it will see an increase of 3% to $55.7 billion in 2024, Tom's Hardware reported.