Following speculations about budget cuts in its data center and client computing divisions Intel Corporation, a prominent chipmaker, has confirmed additional layoffs.

Earlier this year, Intel implemented widespread pay reductions, including missed bonuses and salary cuts for senior executives and employees, as part of its cost-cutting measures amidst a significant downturn in the semiconductor industry that impacted chip designers and manufacturers.

In response to inquiries from Tom’s Hardware, the technology giant has said that it is currently undergoing “function-specific workforce reductions.”

Intel’s first-quarter earnings report for 2023 marked one of the company’s historically worst performances. The company experienced a significant 36% annual drop in revenue and reported a loss of four cents per share.

Despite these losses, Intel remained committed to satisfying its investors, as it paid $1.5 billion in dividends directly from its own funds during Q1, maintaining payment levels similar to the previous year’s quarter.

Initially, the reports of potential layoffs and a new business strategy were speculative and lacked official confirmation. However, Intel has now verified these reports in response to inquiries from Tom’s Hardware.

The layoffs are part of Intel’s latest endeavors to regain its position as a leading chipmaker, competing against the Taiwan Semiconductor Manufacturing Company (TSMC), while also aiming to establish more manufacturing plants within the United States.

The company’s current market capitalization stands at $129 billion, which is lower than that of its smaller competitor, Advanced Micro Devices, Inc. (AMD). AMD is valued at $145 billion in the stock market, and analysts generally hold an optimistic outlook for the company, anticipating continued growth in its data center market share throughout the year.

This growth may potentially coincide with workforce reductions in Intel’s data center division.

Source: Pro Pakistani