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Intel Plans to Slash Over 20% of Workforce: Report. The Stock Is Rising. - Barron's

1. Intel CEO promises significant restructuring, including mass layoffs of over 20%. 2. Approximately 22,000 jobs will be cut from a workforce of 108,900. 3. Intel stock rose 4.6% in premarket trading after a tough year, down 43%. 4. The company is testing a new 18A chip-manufacturing process to compete. 5. Intel aims to attract external customers like Nvidia and Broadcom for new tech.

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FAQ

Why Bullish?

The announcement of layoffs may improve operational efficiency. Historical instances show that layoffs can lead to stock price rebounds, as seen with other tech companies.

How important is it?

The article discusses major changes in strategy and workforce that are critical for INTC's future.

Why Short Term?

The immediate market reaction is positive due to layoffs. However, long-term success hinges on successful commercialization of new technology.

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