Chip giant Intel Corporation shocked the job market by quietly increasing the number of layoffs in the United States (US) to nearly 2,400 people, four times higher than the initial figure reported last week.
The move, which is focused on Intel's main factory in Hillsboro, Oregon, is expected to be part of a massive cost-cutting plan following intense pressure from competitors in the field of artificial intelligence (AI).
In a press release, Intel announced that the move was taken to make the organization faster, more efficient and ready to face future challenges.
The company is currently on a mission to reduce between 15 and 20% of its global workforce. Of the total number of 109,000 employees worldwide, more than 21,000 employees are expected to be affected.
The announcement comes as Intel continues to struggle to compete with companies such as NVIDIA, which now dominates the AI market, and recently became the first company in history to achieve a valuation of more than $4 trillion.
Despite receiving $6.9 billion in support from the US government through the CHIPS and Science Act, Intel still recorded a loss of $821 million for the first quarter of this year.
The situation becomes more challenging when the layoffs are seen as a benchmark for other technology companies to also restructure, such as Microsoft, Amazon and Ford, which are also reported to be planning to reduce their workforce to make way for generative AI technology.
