Santa Clara, July 31: Intel, in its latest effort to reduce costs and rebound from the earnings slump and market share losses, is planning to lay off thousands of employees. The latest round of Intel layoffs is expected to be announced this week and will affect thousands of people from its total workforce. With this move, the chipmaker is interested in boosting its earnings through semiconductors. 

Bloomberg reported about the new round of Intel layoffs and said that CEO Pat Gelsinger was spending heavily on research and development to improve the company's technology and restore its position in the semiconductor industry. The job cut round, however, is a part of company's ongoing cost reduction efforts amid declined earnings and loss of market share. Pfizer Layoffs: US-Based Pharmaceutical Giant Laying Off Hundreds of Employees in North Carolina, Shutting Facilities. 

This isn't the first time Intel has initiated layoffs this year to reduce costs and improve margins. In April, the US-based tech company laid off employees from its Sales and Marketing group. The layoffs in April were part of the company's broader strategy to streamline its focus and improve its financial position. Last year, Intel laid off hundreds of employees in several rounds for the same reason. 

According to the Bloomberg report, Intel's latest layoffs round will be announced as the tech company faces several challenges in securing its market position. First, it lost its market position to Advanced Micro Devices Inc., which gained a higher market share. Then, the struggle continued as the Nvidia-led chipmakers marched ahead in developing chips that could handle AI-related tasks. Chipmaker SK hynix To Begin Mass Production of Its Next-Generation GDDR7 Graphics Memory Chips in Third Quarter.

Adding more to the struggles, the chipmaker's main business is affected due to uneven demand for the chipsets needed for computers and laptops. Intel's Chief Executive Officer Pat Gelsinger reportedly plans to manufacture semiconductors for other companies. Intel's second-quarter revenue will likely be reported flat compared to last year. The exact number of employees affected by Intel layoffs is not yet specified. 

(The above story first appeared on LatestLY on Jul 31, 2024 09:13 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).