Intel is looking to make a comeback after a dip in its earnings and a decrease in market share through an aggressive plan. This strategy, under heavy consideration, may involve significant job cuts, potentially in the thousands, and may be declared this week, according to sources at the company who wish to remain anonymous. Intel, presently employing around 110,000 people globally, excluding those at subsidiaries being spun off, is set to announce its second-quarter earnings this Thursday.
Intel’s workforce in Ireland consists of nearly 4,900 members. The company’s CEO, Pat Gelsinger, is redirecting resources toward cutting-edge research and development to help Intel regain its standing in the semiconductor industry. The company’s previously unrivalled status has degraded during the reign of previous CEOs as competitors such as Advanced Micro Devices Inc., have gained ground and market share. Intel declined to comment when approached by the press.
Other leading semiconductor manufacturers, including Nvidia, have taken the lead in producing high-end semiconductors designed particularly for complex tasks related to artificial intelligence. Intel is also faced with irregular demand for its bread-and-butter products: chips that power desktop and laptop computers.
CEO Gelsinger is confident in Intel’s potential to enhance its technology and has initiated a strategy to build factories for the production of semiconductors for other companies. Recently, Naga Chandrasekaran was headhunted from Micron Technology Inc. to oversee Intel’s global manufacturing activities as the Chief Global Operations Officer.
Intel downsized its manpower by 5% in 2023, down to 124,800 by year-end, after revealing job cuts starting October 2022. Approximately 130 positions were let go in Ireland.
Intel was also more careful with its budget in other sectors, predicting these cost-cutting measures would save up to $10 billion (£9.2 billion) by 2025.
Analysts suspect that Intel’s second-quarter revenue will remain unchanged compared to the same period last year. However, sales are expected to grow steadily in the latter half of 2024, and total sales for the year are anticipated to surge by 3%, reaching $55.7 billion, as per Wall Street forecasts. If this plays out, it will be the first year on year revenue rise since 2021, according to Bloomberg.