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Intel plans to lay off 10 employees to reduce costs and face financial challenges amid growing competition in the market.
A Intel is preparing a major restructuring of its workforce, with plans to lay off approximately 10 employees globally. This measure is part of a broader strategy to reduce costs and recover the company's financial health, which has faced significant difficulties in recent quarters.
Reasons behind layoffs at Intel
Intel's decision comes in response to a series of financial and market challenges. A company, which is one of the global leaders in semiconductor manufacturing, faces increasing pressure due to market share losses and falling profits since 2021.
The demand for components related to artificial intelligence (AI) has grown rapidly, while Intel has found it difficult to maintain its supply pace.
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Rivals such as AMD and NVIDIA have captured increasingly larger shares of the market, intensifying competition and contributing to pressure on Intel.
This fierce competition and the unfavorable economic scenario lead to an urgent need to reevaluate and adjust the company's strategy.
Cost reduction plan
Intel's layoff plan is an attempt to address the challenging financial situation and support a return to profitability.
The company currently employs around 110 people worldwide, and the reduction of 10 employees would represent around 10% of its workforce.
The expectation is that this reduction could generate savings of approximately US$10 billion by 2025.
The strategy is seen as a way to finance new projects and investments. Among Intel's priorities are expanding its manufacturing capabilities and investing in advanced technologies, such as EUV High-NA.
Those initiatives they aim not only to restore the company's competitiveness, but also to explore new markets and strengthen its position in the industry.
The market reacted positively to the news of possible layoffs. Intel shares rose 1,8%, suggesting that investors are optimistic about the company's prospects for a financial recovery.
The cost reduction plan is seen as a crucial step to help Intel overcome its difficulties and recover some of the lost value of its shares, which fell 40% in 2024.
History of layoffs at Intel
Mass layoffs are nothing new for Intel. In 2022, the company had already announced a cost-cutting plan that included significant cuts to its workforce.
That year, Intel laid off about 5% of its 131.900 employees as part of an effort to reduce expenses by $3 billion.
Since then, the company has continued to make cuts in areas considered non-critical, with the aim of maintaining operational efficiency and reducing expenses.
Now, with the number of employees reduced to 110 thousand, Intel is preparing another wave of layoffs, which should be made official soon.
future expectations
Intel is expected to release a new financial report this Thursday (01), and expectations are that the company's profit will be stagnant compared to the same period last year.
Furthermore, the Data Center and Artificial Intelligence divisions, which are strategic areas for the company, are expected to face a 23% drop in revenue.
A company is focused on using the resources saved from the layoffs to expand its manufacturing capacity and build new factories around the world.
This investment is part of a strategy to regain competitiveness and ensure long-term financial stability.
Intel's plan to lay off 10 employees is a reflection of economic pressures and the need for restructuring to face an increasingly competitive market.
The measure is part of a broader strategy to reduce costs, invest in new technologies and recover the company's position in the global semiconductor market.
Source: CanalTech.
