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Intel is set to slash thousands of jobs, according to sources who spoke to the Bloomberg news agency. The chipmaker's decision is aimed at cutting costs to redirect funds towards research and development.
The announcement of the layoffs could come as early as this week, as reported by Bloomberg. The exact timing of the layoffs remains uncertain, but the company is expected to unveil its quarterly results on Thursday. While the exact number of job cuts has not been specified, it is confirmed that it will affect 'thousands' of positions. Presently, Intel has around 110,000 employees, not including those at its spun-off business units.
By downsizing its workforce, Intel aims to trim expenses in order to boost investments in research and development as well as the establishment of new chip manufacturing facilities. CEO Pat Gelsinger, who assumed office in 2021, is spearheading a new business strategy to help Intel reclaim a dominant position in the chip industry. In its Intel Foundry Services business, Intel plans to manufacture chips for other companies while also outsourcing some of its own products to third-party foundries, such as TSMC, which produces Intel's Arc GPUs. Additionally, a significant portion of the upcoming Lunar Lake chips are being manufactured by TSMC.
Last year, Intel laid off five percent of its workforce and started cutting expenses on various projects, including the cancellation of plans for an R&D center in France and a packaging factory in Italy, as reported by Politico in early July.
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