Intel increases 6% as its begins to implement layoffs at Oregon campuses: report

Intel (NASDAQ:INTC) plans to reduce its workforce in Oregon by 529 employees by July 15, in an initial wave of cuts that will eventually add up to thousands, according to The Oregonian.

“Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” Intel said, according to the report.

Intel shares jumped 6% by afternoon trading on Tuesday.

It was reported in April that Intel planned to reduce its global workforce by 20,000, or 20%. It marked the first major restructuring under CEO Lip-Bu Tan, who took over the struggling chipmaker in March.

Intel fell behind in technological innovation and has struggled to keep pace with Taiwan Semiconductor Manufacturing (TSM) and others in the AI computing space, leading to three consecutive years of declining sales and growing losses. TSMC produces chips for Intel’s rivals, such as Advanced Micro Devices (AMD) and Nvidia (NVDA).