Intel plans to cut thousands of jobs to finance a recovery and address its declining market share.
The move aims to help the company cope with its struggles in keeping up with the increasing demand for AI-related chips.
Intel faces challenges in the personal computer and server markets, with significant competition in the AI chip sector.
CEO Pat Gelsinger started a turnaround plan to improve manufacturing capabilities, invest in advanced chip technologies, and explore new market opportunities.
In October 2022, Intel announced a cost-reduction plan, including job cuts, to reduce annual costs by $3 billion in 2023.
The company’s workforce is expected to decrease to 124,800 by the end of 2023, down from 131,900 the previous year.
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This plan was projected to generate annual cost savings of $8 billion to $10 billion by 2025.
Analysts predict Intel’s second-quarter revenue will remain flat compared to the previous year, with a 23 percent decline in the data center and AI segments.
Intel also focuses on expanding its foundry business, which involves manufacturing chips for other companies.
