Intel Plans To Reportedly Layoff At Least 10,000 Employees To Rebound From Share Losses

Chip giant Intel Corp., which has about 1,10,000 employees globally, is reportedly planning to lay off thousands of jobs as a cost-cutting measure and recover from its losses, according to a Bloomberg report. There are rumours abuzz that the figures could be a staggering 10,000 techies being handed the pink slip. Per media reports, the company will exercise layoffs as early as this week, probably before announcing its second quarterly earnings. The company had earlier, in 2023, announced the same. It reduced the workforce by 5% in 2022. Intel expects to save up to $10 billion by 2025 with the job cuts.

The move comes in the wake of rival chipmakers like Nvidia Corp. growing in leaps and bounds with focus on AI. Big guns, including Elon Musk’s EV and AI companies, are collaborating with Nvidia for their AI computational needs. Most LLMs by major tech giants deploy Nvidia GPUs for processing. With growing AI computing needs, Intel is sluggishly pivoting, with its new AI chip, Gaudi 3, unveiled in April 2024. The Intel offering boasts 1.5x more speed than the Nvidia H100, which is being used by Elon Musk’s xAI in the development of the next version of Grok AI.

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