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Intel Corp. plans to cut thousands of jobs to reduce costs and fund efforts to recover from an earnings slump and market share losses.

The layoffs may be announced as early as this week, according to sources familiar with the company's plans, who requested anonymity. Intel, set to report second-quarter earnings Thursday, has about 110,000 employees, excluding those in spun-out units.

CEO Pat Gelsinger is investing heavily in R&D to improve Intel’s technology and regain its position in the semiconductor industry. The company has lost ground to rivals like Advanced Micro Devices Inc. under previous leadership. An Intel spokesperson declined to comment.

Intel shares rose about 1% in late trading, reaching as high as $31.11, following the news.

Other chipmakers, led by Nvidia Corp., have outpaced Intel in developing semiconductors for AI-related tasks. Intel is also dealing with fluctuating demand for laptop and desktop computer chips, its core business.

Gelsinger is betting on Intel’s technological improvement with plans to build factories for manufacturing semiconductors for other companies. Last week, Intel hired Naga Chandrasekaran from Micron Technology Inc. as chief global operations officer to oversee manufacturing efforts.

Intel reduced its workforce by about 5% to 124,800 in 2023 after announcing job cuts in October 2022. It has also cut spending in other areas, expecting these reductions to save up to $10 billion by 2025.

Analysts expect Intel to report flat second-quarter revenue compared to a year earlier, with modest growth in the second half of 2024. Total sales for the year are projected to increase by 3% to $55.7 billion, marking the first annual revenue increase since 2021.