Intel, a major player in the computer chip industry, is facing some tough times and has decided to lay off thousands of employees to help it recover from financial losses and adapt to changes in the market, reports Reuters. The company has seen its stock price fall by nearly 40% this year and is struggling to meet the rapidly growing demand for chips used in artificial intelligence (AI) applications. To address these issues, Intel plans to cut jobs and implement cost-saving measures.

Why is Intel laying off workers?

Intel has announced that it will cut many jobs to save money and improve its financial position. The company is struggling with a few issues. First, their market share is declining as they are unable to meet the growing demand for chips used in artificial intelligence (AI) applications. Second, their stock price has fallen significantly this year – by about 40% – which shows that they are not doing well financially.

What is Intel doing to fix this problem?

To turn the situation around, Intel’s CEO, Pat Gelsinger, is making several changes:

–Improving manufacturing: Intel is focusing on enhancing its chip-manufacturing processes to become more competitive.
–Investing in new technologies: They are investing money in developing new, advanced chip technologies.
–Exploring new markets: The company is also exploring new areas where it can expand and grow.

What was the previous plan?

In October 2022, Intel had already started a cost-cutting plan, which included reducing their workforce. Their goal was to cut costs by $3 billion in 2023, which meant laying off some workers. The goal was to reduce their workforce from 131,900 to 124,800 by the end of 2023. They hoped that this plan would help them save between $8 billion and $10 billion by 2025.

Analysts expect Intel’s revenue in the second quarter of this year to be similar to last year. However, they estimate that Intel’s data center and AI business will see a significant decline of about 23 percent.

Intel has traditionally made its own chips, but it is now working on making chips for other companies as well. Investors hope that new government initiatives to boost chip manufacturing in North America will help Intel’s future prospects. The goal is to reduce dependence on Taiwan, a major supplier of chips, and strengthen the supply chain in the US.

In short, Intel is taking drastic steps including job cuts to recover from its financial problems and adapt to the changing technological landscape. They hope that these steps will help them regain their competitive edge and improve their financial performance in the long run.