Intel Plans to Lay Off Thousands of Employees to Cut Costs, Stock Price Rises

TapTechNews July 31, early this morning Beijing time, according to Bloomberg citing people familiar with Intel's plans, Intel plans to lay off thousands of employees to cut costs, and the plan may be announced as early as this week.

Reports say that Intel currently has the ambition to bounce back from the current situation of declining profitability and decreasing market share, and this round of layoffs will provide funds for Intel's ambition. Intel will announce its second-quarter financial results this Thursday local time, and the company has about 110,000 employees, excluding the spun-off departments.

Intel CEO Pat Gelsinger is investing heavily in R & D to improve the technology and return to the leading position in the semiconductor industry. Affected by this news, Intel's stock price rose about 1% in the late trading session, reaching a maximum of $31.11 (TapTechNews note: currently about 226 RMB).

Since announcing the start of layoffs in October 2022, the number of Intel employees has decreased by about 5% in 2023 and dropped to 124,800 by the end of the year. The company has also slowed down spending in other areas and expects that by 2025, a series of cost-cutting measures will save the company up to $10 billion (currently about 72.629 billion RMB).

Analysts expect that Intel's second-quarter revenue will be flat compared to the same period last year. According to Wall Street estimates, Intel's growth in the second half of the year will pick up slightly, and the total annual sales will achieve a year-on-year increase of 3% to $55.7 billion (currently about 404.542 billion RMB), which will be the first increase in annual revenue since 2021.

Based on TapTechNews' previous reports, many domestic and foreign technology giants have announced large-scale layoffs this year, including but not limited to Microsoft, Tesla, Google and other enterprises.