Shares of Intel (INTC 7.48%) are spiking on Tuesday, up 6.4% as of 1:13 p.m. ET. The move comes as the S&P 500 (^GSPC -0.05%) and the Nasdaq Composite (^IXIC 0.14%) were relatively flat.

Intel began laying off employees from one of its operational hubs in Oregon as part of its major cost-cutting efforts.

Intel is cutting jobs across the board

Intel began laying off employees from its Oregon plant on Monday. The company expects to lay off 500 of its staff from the main fabrication hub in North America. The move is part of the company's efforts to significantly cut costs and is part of a larger 20% reduction in its global workforce.

In a statement to the press, Intel said this would help make Intel "a leaner, faster, and more efficient company," adding, "Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution."

Image source: Getty Images.

Intel is attempting to turn the ship

Intel is aggressively cutting costs at a time when it has fallen behind its chipmaking rivals, ceding market share to Advanced Micro Devices and Arm Holdings. Just recently, a Citi research note revealed that Intel's share of chip shipments fell by more than 1.8% to 65.3% in the first quarter of 2025, the lowest level since Citi began modeling the industry in 2002.

While cost-cutting will help boost its bottom line, it must focus on regaining market dominance and catching up to its competitors. I think Intel will eventually be able to do so and turn the ship around, despite its current troubles, but the road will likely be rocky.