Sources revealed to Bloomberg that Intel plans to announce layoffs of nearly 20% of its total workforce later this week. This step is part of the company's efforts to cut costs, streamline operations, and overcome bureaucracy under its new CEO, Pat Gelsinger.
This anticipated layoff will be the first major restructuring since Pat Gelsinger took office last month. This move follows layoffs of about 15,000 employees in August of last year, which reduced the company's total workforce to 108,900 employees by the end of 2024.
As part of its cost-cutting and efficiency efforts, Intel recently announced the sale of a majority stake in its programmable chip unit, Altera, to Silver Lake for $4.46 billion. The company also postponed its plans to build a new factory in Ohio.
In terms of trading, Intel's stock (INTC) rose significantly during Wednesday's session. In the latest update, the stock price reached about $19.51, up approximately 3.56%.
This increase reflects investors' reactions to news indicating serious moves by the new management to restructure the company and improve efficiency, despite the potential negative impacts of layoffs in the short term.
