Intel Corporation, a major chipmaker, has announced more layoffs after rumours of budget cuts in its data centre and client computer units.
In response to a semiconductor industry downturn that hurt chip designers and manufacturers, Intel reduced salaries and bonuses for senior executives and employees earlier this year.
The IT behemoth told Tom’s Hardware it’s doing “function-specific workforce reductions.”
Intel has its worst first-quarter earnings announcement in 2023. Revenue fell 36% and earnings fell four cents per share.
Despite these losses, Intel paid $1.5 billion in dividends straight from its own cash in Q1, sustaining payment levels from the prior year.
Layoffs and a new business strategy were initially rumoured. After Tom’s Hardware inquired, Intel confirmed these stories.
Intel is laying off workers to compete with Taiwan Semiconductor Manufacturing Company (TSMC) and build new US factories.
The company’s market cap is $129 billion, lower than AMD’s. AMD is worth $145 billion, and experts expect its data centre market share to expand throughout the year.
This expansion may correlate with data centre labour reductions at Intel.