Intel faces scrutiny over job cuts as it competes for $20 billion in chip subsidies – Intel (NASDAQ:INTC)

Intel Corp INTC He caught the senator's attention with his record plans to cut jobs, even though the company was entitled to $20 billion under the US Chip Act.

The US subsidies were primarily aimed at creating over 10,000 manufacturing jobs and 20,000 construction jobs for projects in Arizona, New Mexico, Ohio and Oregon.

With this strategy, the USA pursued the goal of reducing its dependence on Asian partners such as China in the field of semiconductor technology.

Therefore, Republican Senator Rick Scott asked how many Intel employees in the US would lose their jobs and what impact this would have on Intel's planned investments in semiconductor production, Reuters reports.

Last week, Intel announced the resignation of Lip-Bu Tan from the board after serving on the Mergers and Acquisitions Committee for nearly two years.

The departure followed Intel's dismal second-quarter results. The company reported a 0.9 percent decline in revenue, below the analyst consensus of $12.94 billion. The company also announced a $10 billion cost-cutting plan that includes a more than 15 percent reduction in its workforce.

In contrast, Nvidia Corp NVDA is characterized by boss Jensen Huang's strategy of retaining employees through generous compensation and compensating them for the demanding work environment.

Intel has set a goal to ship chips for over 100 million personal computers with artificial intelligence by 2025, including over 40 million in 2024.

Intel stock has fallen 43% over the past 12 months as the shift toward artificial intelligence impacted the PC and data center segments. At the same time, Nvidia has gained 158% over the past 12 months thanks to the AI ​​hype.

Price promotion: At last check on Thursday, INTC shares were trading 0.25% higher at $19.66 in premarket trading.

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