Intel is preparing to cut thousands of employees to reduce costs

Intel will report in detail on its second-quarter results later this week, but Bloomberg tried to preempt the agenda for the upcoming event by mentioning the processor giant’s management’s intentions to cut thousands of employees to reduce costs. An official announcement could be made this week, according to the source.

Image Source: Intel

So far, Intel representatives have not commented on the situation. The company currently employs about 110,000 people, excluding employees of divisions that are in the process of being separated from the parent corporation. Intel had already cut about 5% of its workforce to 124,800 people last year, announcing staffing changes would begin in October 2022. The staff cuts are part of Intel’s multi-year cost-cutting plan, which should save the company a total of $10 billion by 2025.

Analysts on average expect Intel to report second-quarter revenue unchanged from last year. In the second half of the year, it should increase slightly, and this will allow revenue to increase by 3% to $55.7 billion for the entire year. If this happens, then Intel’s annual revenue will grow for the first time since 2021. Current CEO Patrick Gelsinger is trying to restructure the corporation’s business, but so far his efforts involve large expenditures on building new plants and eliminating the gap between Intel and its competitors in the field of lithography technologies. If successful, the fruits of these efforts can be reaped after 2025, but for now Intel’s financial statements do not show much reason for investors to rejoice.