Intel to cut jobs to fund recovery
The layoffs and cost reductions are seen as necessary steps for Intel to reclaim its position in the semiconductor industry amidst stiff competition.
Intel will be laying off thousands of workers in an effort to finance its recovery amidst its plummeting revenues and market share. While the US chipmaker is one of the dominant players in the personal computer market, it still hasn’t caught pace with the growing AI chip demand.
Intel’s CEO, Pat Gelsinger, has initiated huge investments in enhancing manufacturing capabilities and improving the company’s tech capabilities. Traditionally focused on designing and producing its chips, Intel will now strive to enter the foundry business to manufacture chips for other companies as well.
Why does this matter?
Intel’s push for innovation is vital at this juncture, where, despite the recent increase in the importance of semiconductors driven by the AI revolution, Intel’s dominance in the semiconductor industry has waned. With competitors like NVIDIA, TSMC, Qualcomm, and MediaTek emerging as industry frontrunners, Intel’s slashing of cost is a bid to reclaim its industry market position.
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