Intel stock jumps after reports that the chipmaker plans to cut more than 20% of its staff

Takeaways from the Key Takeaways

• Intel shares rose after a report said the struggling chipmaker planned to cut over 20% of its employees.
• Bloomberg reported on the layoffs, citing an individual with knowledge of this matter.
• Intel is expected to release its quarterly earnings report after the close of the markets on Thursday. This will mark Intel’s first report under CEO Lip-Bu Tan, who took over at the company last month.

Intel (INTC), the struggling chipmaker, surged in its shares Wednesday following a report that it could announce this week plans to cut more than 20% of staff.

Bloomberg reported that the layoffs were part of Intel’s attempt to streamline its operations. This would be the first major effort since CEO Lip-Bu Tang took over the company last month. 

Intel declined comment on the report.

Intel announced a plan in August to lay off 15 percent of its workforce, as part a 10-billion-dollar cost-savings program. The U.S. chips maker is slated to release its quarterly earnings report after the close of markets on Thursday. This will also be its first since Tan has taken over.

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

Intel shares were up more than 6% in early Wednesday trading, but have lost approximately 40% of their worth in the last 12 months. (Read Investopedia’s live coverage of today’s market action here.)