Intel (INTC) reached a challenging milestone as over 2,000 employees faced layoffs. Despite this significant reduction in workforce, shareholders reacted positively, with shares seeing a modest rise on Thursday afternoon.
Reports from the Times of India reveal that layoffs have affected “multiple U.S. states,” including Arizona, California, Oregon, and Texas. This latest round includes over 2,000 job cuts as Intel embarks on a plan to eliminate a total of 15,000 positions. These layoffs may coincide with previous cuts delayed in Israel, as noted earlier this week.
The impact is especially pronounced in Oregon, where Intel is the second-largest private employer. Losing any of its 20,000 workers there significantly affects the state’s economy. Furthermore, additional job cuts may still be in the pipeline as Intel seeks to optimize its spending.
New Partnerships: Intel’s Spin-Off Joins Forces with Amazon
On a brighter note, Intel’s spin-off company, Articul8 AI, has secured a partnership with Amazon Web Services (AWS), the cloud division of Amazon (AMZN). According to a report from the Silicon Valley Business Journal, this new “strategic collaboration agreement” promises to enhance Articul8’s capabilities.
Alan Braun, AWS’s director of technology partnerships, explained that this collaboration will enable Articul8 to provide advanced solutions for customers to build and launch enterprise-level generative AI applications on AWS, ultimately leading to substantial business outcomes.
Wall Street Weighs In: Hold Recommendation for Intel
Looking at Wall Street’s outlook, analysts have assigned a Hold consensus rating for INTC stock. This assessment includes one Buy, 26 Holds, and seven Sells over the past three months. Following a significant 35.55% decrease in share price over the last year, analysts have set an average price target of $25.38 per share, which indicates a potential upside of 12.57%.
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