Intel Might Be Cutting Jobs Ahead of Upcoming Earnings Report – RetailWire

Thousands of Intel workers may be out of a job by the end of the week. According to Investing.com, the chipmaker might be laying off a significant number of employees to cut costs after recent market share losses and earnings declines.

Intel has not officially announced any job cuts, but insiders note the plan is to wait until the second-quarter earnings are released on Thursday. Industry experts are predicting another round of losses, with expected earnings per share dropping to 10 cents from 13 cents for the same period last year. Revenue is likely to fall to $12.92 billion from $12.95 billion in 2023, as reported by MarketWatch.

Meanwhile, other chipmakers have been running circles around Intel. NVIDIA Corp. has been steadily gaining market share through the development of next-generation AI processors. In contrast, Intel continues to struggle with its core business as demand fluctuates for desktop and laptop chips.

In an effort to regain dominance in the industry, Intel’s revitalization plan includes funneling money back into research and development. In addition, the chipmaker intends to open factories dedicated to the production of chips for other companies. Yet, only time will tell if Intel can successfully regain market share.

So far this year, Intel stock is down 40%. While stock prices in the semiconductor industry are struggling across the board, Intel remains among the absolute worst performers in the Dow Jones Industrial Average. However, the stock price did jump temporarily on the news of potential job cuts.

Layoffs are nothing new for Intel. Last year the company slashed its workforce by 5%. According to a report by Tech Story, Intel’s Sales and Marketing Group went through a reorganization in April, which included significant job cuts.

According to current estimates, the company has around 110,000 employees worldwide. There is no word on exactly how many workers will be affected, and Intel has yet to comment on the recent rumors.