Intel plans to cut thousands of jobs to finance recovery, Bloomberg News reports

(Reuters) -Intel plans to cut thousands of jobs to finance a recovery and cope with eroding market share, Bloomberg News reported on Tuesday, citing people familiar with the matter.

Shares of the chipmaker, which is set to report quarterly results on Thursday, were up about 1% in extended trading. The stock has slumped 40% so far this year.

Intel declined to comment on the report when contacted by Reuters.

The U.S chipmaker remains a major player in the PC and server markets, but has struggled to keep pace with the growing demand for chips used in AI applications.

CEO Pat Gelsinger has initiated a turnaround to regain its competitive edge, focusing on revitalizing Intel’s manufacturing capabilities, investing in advanced chip technologies, and expanding into new markets.

Intel’s total employee count was 124,800 at the end of 2023, based on a regulatory filing.

(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)