Intel To Lay Off 235 Employees In 5th Round Of Job Cuts This Year

During earlier rounds of layoffs, Intel eliminated 549 positions at its Folsom campus, constituting a little more than 10 per cent of the entire workforce.

Tech giant Intel has revealed intentions to lay off around 235 employees in its fifth round of workforce reductions this year, the media has repored. This move is in line with the trend of major US companies downsizing, despite a easing of recession concerns. Santa Clara-based semiconductor giant Intel has plans to lay off 235 employees at its Folsom (Sacramento County) research and development facility, as per state regulatory filings, reported San Fransisco Chronicle.

The layoffs at the chip giant are slated to commence on December 31 and unfold over a two-week period. Last year, Intel had mentioned that it has a goal of cutting costs by $10 billion by 2025, through layoffs, reduced hours and potentially selling divisions.

“Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workplace reductions across the company," Company spokesperson Addy Burr was quoted as saying in a statement by San Fransisco Chronicle report.

Burr mentioned that there may be additional cuts next year.

During earlier rounds of layoffs, Intel eliminated 549 positions at its Folsom campus, constituting a little more than 10 per cent of the entire workforce.

During an earnings call in October, Intel CEO Pat Gelsinger mentioned that the company's financial performance suffered due to a deceleration in the personal computer (PC) market. Intel's third-quarter (Q3) declined from $19.4 billion to approximately $15.4 billion year-over-year (YoY).

It should be noted that Nvidia recently surpassed Intel, TSMC and Samsung to emerge as the leading and most lucrative semiconductor chip brand, globally.

Climbing from the fourth position in the first quarter (Q1) 2023, the GPU design major has now claimed the top spot in Q3, fueled by the thriving Generative AI (Gen AI) trend. Taipei's financial analyst, Dan Nystedt, who compiled financial data from Intel, Nvidia, Samsung Semiconductor and TSMC spanning all quarters since Q1 2021, mentioned that Nvidia is at the top as the world's most profitable chip company, as first spotted by Sam Mobile in November.

In the third quarter of this year, Nvidia recorded staggering figures, with revenue reaching $18.12 billion and profits soaring to $10.42 billion -- a remarkable 206 per cent year-over-year surge, largely attributed to the sale of AI chips for data centres.