Intel May Eliminate Thousands Of Jobs To Reduce Costs: Report

American chipmaker Intel is reportedly planning to cut thousands of jobs to reduce costs. Bloomberg reported on Wednesday that Intel's move is part of efforts to fund an ambitious recovery plan following a slump in earnings and market share losses. Intel has not made any official comment on the matter.

The report, citing people familiar with the company's plans, also indicates that the workforce reduction could be announced as early as this week. Intel, headquartered in California, is a major player in the personal computer and server markets. The tech giant reportedly employs about 110,000 people, excluding workers from units being spun off. Notably, this move comes ahead of Intel's second-quarter earnings report, which is scheduled for Thursday.

In October 2022, Intel announced a cost-reduction plan that aimed at cutting annual costs by $3 billion in 2023. As per regulatory filings, the plan aimed at reducing the company's headcount to 124,800 at the end of 2023 from 131,900 a year earlier, reported Reuters. Intel also said in February last year that the plan was expected to provide annual cost savings between $8 billion and $10 billion by 2025.