Intel Stock Jumps as Chipmaker Reportedly Plans To Cut Over 20% of Staff

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Intel (

INTC

) shares surged Wednesday, following a report the struggling chipmaker could announce plans this week to reduce more than 20% of its staff.

The layoffs are part of Intel’s bid to streamline its operations,

Bloomberg

reported, citing a person with knowledge of the matter, and would mark the first major effort to do so since CEO Lip-Bu Tan took over running the company
last month
.

Intel declined to comment on the report.

Intel in August had announced a plan to lay off
15%
of its workforce as part of a $10 billion cost-savings plan. The U.S. chipmaker is
slated to report
quarterly earnings after markets close on Thursday, also its first report since Tan took the helm.

Tan had replaced Pat Gelsinger, who
retired late last year
after failing to turn around the U.S. chipmaker. Under Gelsinger, Intel’s manufacturing business struggled to compete with global players like Taiwan Semiconductor Manufacturing Co. (

TSM

).

Intel shares were up over 6% in early trading Wednesday, but have lost about 40% of their value in the past 12 months. (Read

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