Intel to Reportedly Cut Thousands of Staff
Intel Corp. (NASDAQ:INTC) is looking to make major staff cuts in the coming period, Bloomberg News reported citing people with knowledge of the situation.
The chipmaker plans to announce cost-cutting measures this month, somewhere around its Q3 earnings report that is scheduled for October 27. Intel could cut up to 20% of staff in certain divisions, like marketing and sales.
At the end of Q2, Intel reported it employed nearly 114,000 people. CEO Pat Gelsinger warned on the Q2 earnings call that Intel may take “additional actions” in the second half of the year to lower costs.
Cuts are needed to offset a significant slowdown in demand for PC processors, Intel’s key business area. Moreover, analysts highlighted in recent months that Intel continues to lose its market share to AMD (NASDAQ:AMD). As a result, analysts are looking for revenue deceleration of almost 20% for Q3.
Separately, the WSJ reported that CEO Gelsinger is pushing to further separate its design and manufacturing teams.
BofA analysts see both steps as “necessary, but they would be insufficient to change our fundamental concerns around core strategic, competitive and financial risks.” They believe headcount reduction could expand CY23 net income by $1.3 billion.
INTEL CORP. Technical Analysis: Daily Chart
In the daily charts, INTEL CORP. is trading in down channel. INTEL CORP. is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 24.68 & the resistance level is at 25.67.
INTEL CORP. will trade in down channel until there is trend reversal.
How to Trade INTEL CORP. this Week:
INTEL CORP. will follow the down channel until there is trend reversal. So, remain bearish on INTEL CORP..
