Intel is counting on cutting thousands of jobs to renew itself

© Intel

Intel, the giant American semiconductor maker, known primarily for its processors, is preparing to cut its workforce.

According to sources familiar with the matter, thousands jobs could be cut in the coming days. This drastic decision is part of a broader strategy to cut costs and finance an ambitious recovery plan.

A giant in search of renewal

Under the impetus of its CEO Pat Gelsinger, Intel is looking to regain its leadership position in a rapidly changing chip market. Faced with fierce competition from AMD and NVIDIA's all-powerful artificial intelligence, the Santa Clara group has seen its position seriously erode in recent years.

To reverse the trend, Gelsinger is betting big on research and development as well as on a bold plan: to make Intel a chipmaker for other companies. A strategy that requires colossal investments, particularly in new factories.

Necessary sacrifices ?

© Presse-citron/Intel

C’is The upcoming social plan fits into this context. Intel, which currently employs around 110,000 people, had already reduced its workforce by 5% in 2023. The company hopes to save up to $10 billion by 2025 through these cost-cutting measures.

Expected results

Analysts expect revenue to be flat for the second quarter of 2024, but expect growth to pick up slightly in the second half. For the full year, Intel’s revenue is expected to rise 3% to $55.7 billion, marking the first annual increase since 2021.

A Risky Bet

While this restructuring seems necessary to secure Intel’s future, it also carries risks. The massive job cuts could affect morale and the company's ability to innovate in the short term.

It remains to be seen whether this redundancy plan will actually help Intel regain its former glory in a constantly evolving industry. One thing is for sure: the next few months will be crucial for the future of the chip giant.

• Intel has been struggling for several years now in the face of fierce competition from AMD and NVIDIA
• In order to get back on its feet, the Santa Clara company is focusing on R&D, while cutting its workforce.
• According to rumors, no fewer than 10,000 employees are expected to lose their jobs soon

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