Intel to slash 20% of workforce in bold bid to reclaim tech dominance
Intel is preparing to lay off more than 20% of its global workforce this week in a sweeping restructuring plan aimed at streamlining its management and reviving an engineering-focused culture, according to a Bloomberg report.
The cuts come under newly appointed chief executive Lip-Bu Tan, who took the helm of the company last month and is looking to streamline operations following years of declining sales and lost ground to rivals in artificial intelligence.
The layoffs would mark Intel's largest workforce reduction to date, and follow a round of 15,000 job cuts announced in August 2024. Intel reported having 108,900 employees at the end of last year, down from 124,800 the year before.
'These decisions have challenged me to my core,' said former CEO Pat Gelsinger last year, describing the restructuring process as among the most difficult moments of his tenure.
A spokesperson for Intel did not immediately respond to a request for comment. The company is expected to detail its plans further during its first-quarter earnings report on Thursday.
Tan, a veteran of Cadence Design Systems, vowed to divest non-core units and invest in more competitive products. Last week, Intel sold a 51% stake in its programmable chip unit, Altera, to Silver Lake Management.
'It won't happen overnight,' Tan said at the Intel Vision conference last month. 'But I know we can get there.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Engadget
8 hours ago
- Engadget
Apple is reportedly considering the acquisition of Perplexity AI
Apple's executives are thinking of acquiring Perplexity AI both to get more talent and to be able to offer an AI-based search engine in the future, according to Bloomberg . Adrian Perica, Apple's head of mergers and acquisitions, has reportedly already talked about the idea with services SVP Eddy Cue and the company's top decision-makers with it comes to its AI efforts. It's early stages, however: Apple has yet to talk to Perplexity about a bid, and the internal talks may not even lead to a formal offer. The executives also reportedly discussed an alternative, wherein instead of buying Perplexity outright, it'll team up with the AI company instead. Either way, the idea is to develop an AI search engine powered by Perplexity and to integrate Perplexity's technology into Siri. While Apple has yet to make a formal offer, Bloomberg says it met several times with Perplexity over the past few months. In May, Cue revealed that Apple discussed a possible Safari-integration with Perplexity while on the stand for Google's ongoing Search antitrust case. Cue took the stand due to Apple's long-standing deal with Google to make its search engine the default on the iPhone. (In turn, Apple gets billions of dollars a year — $18 billion in 2021 — from the arrangement.) Cue didn't share any definitive plans, however, including the possibility of an acquisition. If regulators order Apple to end its partnership with Google, purchasing Perplexity would make it easier for the company to develop an AI-based search engine. In addition, it would allow the company to acquire talent needed to be able to catch up with other companies when it comes to artificial intelligence. Apple, like Meta, has been scouting for new AI talent. Bloomberg says it's even competing against the Facebook owner to hire Daniel Gross, the founder of AI company Safe Superintelligence Inc. The company does seem to need help to be able to release the AI features it wants to provide its users. A few months ago, for instance, Apple delayed the rollout of a more powerful Siri that was a key component of its original pitch for Apple Intelligence.
Yahoo
10 hours ago
- Yahoo
Intel (INTC) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Intel (INTC) closed at $21.08, marking a -1.91% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.51%. The world's largest chipmaker's stock has climbed by 4.57% in the past month, exceeding the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%. The investment community will be closely monitoring the performance of Intel in its forthcoming earnings report. The company is forecasted to report an EPS of $0.01, showcasing a 50% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.87 billion, showing a 7.53% drop compared to the year-ago quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.29 per share and a revenue of $50.8 billion, indicating changes of +323.08% and -4.33%, respectively, from the former year. Investors should also note any recent changes to analyst estimates for Intel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Intel is currently sporting a Zacks Rank of #3 (Hold). In terms of valuation, Intel is presently being traded at a Forward P/E ratio of 73.31. Its industry sports an average Forward P/E of 35.75, so one might conclude that Intel is trading at a premium comparatively. It's also important to note that INTC currently trades at a PEG ratio of 7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.52. The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 34% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow INTC in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Gizmodo
11 hours ago
- Gizmodo
The First Prime Day Deal Has Landed: New HP Laptop (Touch, 64GB RAM, 2TB SSD, Win 11 Pro) Is 70% Off
HP laptops tend to cost over $1,000 (occasionally much more) so it's not common to come across a offer that grabs the attention. But Amazon just launched a Prime Day preview and this offer is available to everyone – not just Prime members. The HP 2025 touchscreen laptop (i3, 2TB SSD, 64GB RAM, Windows 11 Pro, Office lifetime + 4-in-1 USB-A adapter) is an amazingly robust bit of kit that would usually send the price well beyond most individuals' budget. Currently available for only $769, this laptop comes at a whopping discount from its normal cost of $2,600. This all-time low makes it one of the most affordable high-spec laptops on the market, especially considering the generous storage and memory included. See at Amazon At its core is a 13th gen Intel i3-1315U processor which is capable of turboing up to 4.5GHz and features six cores and eight threads. This setup ensures smooth multitasking and efficient processing of business applications and even light gaming. The integrated Intel UHD Graphics offers smooth 4K streaming and executes graphics-intensive activities like a pro. The 15.6-inch HD touchscreen display with 1366 x 768 resolution and 250 nits brightness offers easy control and responsive use. It has a massive which is significantly more than what most student or business laptops offer, even at much higher price ranges. This ensures that multitasking is seamless, and you can have multiple heavy-duty programs running simultaneously without lag. The 2TB SSD provides ample space for files, photos, videos, and programs and boasts fast boot and load times. The HP laptop incorporates a Wi-Fi 6E and Bluetooth connectivity for speedy and secure wireless connections for streaming. It also includes an array of ports that consists of HDMI 1.4, USB-C 3.0, two USB-A 3.0 ports and a headphone/microphone combo port. The inclusion of a numeric keypad is also a bonus for business people and students who often have to work with numbers. It is one of the priciest add-ons, the pre-installed lifetime license of Microsoft Office. That's where you have full access to Office Pro straight out of the box, no subscription or trial required. Copilot for Windows 11, an AI productivity assistant for managing projects and staying creative, also comes with it. Windows 11 Pro is pre-installed with its sophisticated security, multitasking, and connectivity features. If you're in the market for a new laptop, this Prime Day sneak peek is one of the best deals you'll find all year. See at Amazon
