The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
Intel Corp plans to eliminate thousands of jobs to reduce costs and fund an ambitious effort to rebound from an earnings slump and market share losses.
Key Points:
- Job Reductions: The workforce reduction may be announced as early as this week, targeting Intel's 110,000 employees, excluding workers at units that are being spun out.
- Earnings and Market Share: Intel aims to address its earnings slump and market share losses under CEO Pat Gelsinger, who is investing heavily in research and development to improve Intel’s technology.
- Competitive Landscape: Intel's rivals, including Advanced Micro Devices Inc and Nvidia Corp, have gained market share, particularly in AI-related semiconductors. Intel is also dealing with fluctuating demand for chips used in laptops and desktop computers.
- Strategic Shifts: Gelsinger has initiated plans to build factories for manufacturing semiconductors for other chipmakers. Recently, Intel hired Naga Chandrasekaran from Micron Technology Inc as chief global operations officer to oversee the company’s manufacturing efforts.
- Previous Workforce Reductions: Intel reduced its workforce by about 5% in 2023, ending the year with 124,800 employees after announcing job cuts in October 2022. These cost reductions are expected to save as much as US$10 billion by 2025.
- Financial Outlook: Analysts project that Intel's second-quarter revenue will be flat compared to a year earlier, with modest growth anticipated in the second half of 2024. Total sales for the year are expected to increase by 3% to US$55.7 billion, marking the first annual revenue increase since 2021.
Intel’s move to cut jobs and streamline operations reflects its strategy to regain industry leadership and bolster financial performance amid increasing competition and technological advancements in the semiconductor market.
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