Intel plans to reduce its workforce by thousands as part of a strategic move to cut costs and channel funds into reviving its market position, Bloomberg reported citing sources.

The job cuts, which could be announced imminently, are a response to recent earnings slumps and market share losses.

With a current headcount of approximately 110,000 excluding spin-off units, the company faces the challenge of regaining its once-dominant status in the semiconductor industry.

Intel CEO Pat Gelsinger has initiated substantial investments in research and development to enhance the company's technological capabilities.

This push for innovation is crucial as Intel contends with competitors such as Advanced Micro Devices (AMD), which have made significant inroads into Intel's market share.

A representative for Intel refused to comment on the report.

Intel's actions also reflect the urgency to address challenges from other chipmakers, particularly Nvidia, which has excelled in producing high-demand artificial intelligence-focused semiconductors, the report said.

The company's primary revenue stream from laptop and desktop computer chips is also experiencing fluctuating demand.

Gelsinger's strategy includes not only technological advancements but also an expansion into manufacturing semiconductors for other companies.

This shift is highlighted by the recent appointment of Naga Chandrasekaran, formerly of Micron Technology, as Intel's chief global operations officer, who will oversee the company's manufacturing operations.

Intel has already taken steps to streamline its operations, reducing its workforce by about 5% to 124,800 by the end of 2023 and implementing cost-saving measures anticipated to save up to $10bn by 2025.

In June, Intel finalised a deal with Apollo Global Management to sell a 49% stake in a joint venture linked to its Fab 34 facility in Ireland.

This deal, valued at $11bn, represents a strategic partnership for Intel's high-volume manufacturing facility in Leixlip, Ireland, as the company navigates its path towards recovery and growth.

"Intel to lay off thousands to slash costs and fund technology rebound effort " was originally created and published by Verdict, a GlobalData owned brand.

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