Intel to eliminate thousands of jobs to reduce costs after earnings slump, market share losses

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Intel has plans to lay off thousands more staff as the company wants to reduce costs and fund an "ambitious effort" to rebound from an earnings slump, market share losses, and the debacle surrounding dying 13th Gen and 14th Gen Core CPUs.

In a new report from BNN Bloomberg, we're learning that the reduction in Intel's workforce might be announced as "early as this week, according to people familiar with the matter". Intel is scheduled to report its Q2 2024 earnings on Thursday, with around 110,000 staffers worldwide, excluding workers at units that are being spun out of Intel.

Intel wants to return to dominating the semiconductor industry, with CEO Pat Gelsinger spending big money on research and development to improve its in-house technology. AMD has caught up and taken large chunks of its consumer, workstation, and server processor markets, with an Intel spokesperson declining to comment on the situation.

Intel reduced its workforce by around 5% back in 2023 bringing the total global workforce at 124,800 by the end of 2023, after starting the job cuts back in October 2022. The company is also expected those cost reductions to save close to $10 billion by 2025, but now we're looking at more jobs being sliced and diced at Intel.

The company is leading into the launch of its next-gen Core Ultra 200 series "Arrow Lake-S" desktop CPUs to fight AMD's new Zen 5-based Ryzen 9000 series "Granite Ridge" CPUs, as well as new mobile-focused laptops processors with its upcoming Core Ultra 200V series "Lunar Lake" CPUs penciled in for a September 3 launch, in order to fight AMD's new Zen 5-based Ryzen AI 300 series "Strix Point" APUs.