Intel (INTC) plans to lay off thousands of employees to cut costs and fund a restructuring program aimed at addressing the challenges of declining market share and reduced revenue. Sources reveal that the layoffs could be announced as early as this week. Currently, Intel has about 110,000 employees, excluding those from spin-off divisions.

Although Nvidia leads in developing high-profit semiconductors for artificial intelligence (AI) applications, Intel is still struggling with issues in its core business, specifically the instability in demand for laptop and desktop chips.

To revitalize its business, Intel CEO Pat Gelsinger is investing in research and development and building new wafer fabrication plants to enhance technology and restore leadership in the semiconductor industry.

Last week, Intel poached Naga Chandrasekaran from Micron to serve as Chief Operating Officer, overseeing the company's manufacturing operations. This move is part of Pat Gelsinger's restructuring plan aimed at strengthening the company’s manufacturing capabilities.

Intel began layoffs in October 2022, reducing its workforce by about 5% by the end of 2023, bringing the total number of employees down to 124,800. The company expects to save up to $10 billion in costs by 2025.

Analysts expect Intel's revenue for the second quarter to be flat compared to the same period last year. Growth is expected to recover slightly in the second half of 2024, with total annual sales increasing by 3% to $55.7 billion, marking the first annual revenue growth since 2021.