Intel cutting thousands of jobs to fund $10B rebound strategy

What’s happening at Intel?

Intel is planning to eliminate thousands of jobs in an effort to reduce costs and fund an ambitious rebound strategy following an earnings slump and market share losses.

• The layoffs could be announced as early as this week, according to sources familiar with the company’s plans.
• Intel currently employs approximately 110,000 people, excluding those in units being spun off.
• The company aims to save up to $10 billion by 2025 through spending reductions.

Official statements and context

Intel has not officially commented on the planned layoffs.

• The move aligns with Chief Executive Officer Pat Gelsinger’s strategy to heavily invest in research and development to improve Intel’s technology and regain its competitive edge in the semiconductor industry.
• The company has seen its once-dominant market position erode under previous leadership, losing ground to competitors like Advanced Micro Devices and Nvidia.
• Intel is also facing uneven demand for chips that run laptops and desktop computers, its primary business sector
• The chip maker recently cut jobs by 5% in 2023, following job cuts announced in October 2022.

Leadership changes

CEO Gelsinger is betting on the improvement of Intel’s technology and has initiated a plan to build factories for manufacturing semiconductors for other companies. To bolster this effort, Intel recently appointed Naga Chandrasekaran from Micron Technology as the new Chief Global Operations Officer

Impact in Canada

It remains unclear exactly how many Intel employees in Canada will lose their job as a result of this layoff.

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