Intel to announce thousands of job cuts amid declining profits and market share loss: Report

Intel Corp. is planning to cut thousands of jobs to save money and invest in improving its technology after facing declining profits and losing market share, according to a report by Bloomberg. These job cuts may be announced soon, and Intel, which has around 1,10,000 employees, will report its second-quarter earnings on Thursday.

CEO Pat Gelsinger is investing a lot in research and development to enhance Intel's technology and regain its leadership in the semiconductor industry, which has been challenged by competitors like Advanced Micro Devices Inc. and Nvidia Corp. Intel's stock went up by about 1 per cent following the news.

The company is also dealing with fluctuating demand for its main products, chips for laptops and desktops. Gelsinger is also focusing on building factories to produce semiconductors for other companies. Intel recently hired Naga Chandrasekaran to oversee its manufacturing operations.

In 2023, Intel reduced its workforce by about 5 per cent and plans to save up to $10 billion by 2025 through various cost-cutting measures. Analysts predict Intel's revenue will be flat in the second quarter compared to last year but expect a slight growth in the second half of 2024, marking the first annual revenue increase since 2021.