Intel to eliminate thousands of jobs in cost-cutting move
Intel may cut thousands of jobs to reduce costs amid market pressure and competition from Nvidia and AMD.
Intel is preparing to lay off thousands of employees in an effort to reduce costs, as it faces increasing pressure from shareholders and declining market performance. The announcement is expected soon, with Bloomberg citing anonymous sources familiar with the plans. Intel has struggled as rivals Nvidia and AMD have chipped away at its market share, particularly in the lucrative server market where AMD has steadily gained users.
Professional workstation users are also favoring AMD, with Puget Systems reporting that 90% of its 2023 orders were for Threadripper and Threadripper Pro chips. Meanwhile, CEO Pat Gelsinger has been making significant investments in research and development to reclaim Intel's standing in the semiconductor industry. These investments include a fab manufacturing program aimed at reinforcing the company's position.
In 2023, Intel cut its workforce by about 5% to 124,800, with ongoing job reductions since October 2022. The company anticipates saving up to $10 billion by 2025 through these cost-cutting measures. Intel's second-quarter earnings are expected to show flat growth compared to the previous year, though modest improvement is predicted for the latter half of 2024. Additionally, Intel is addressing a CPU crisis caused by a faulty microcode algorithm, with a patch expected next month to prevent further issues.