Intel announced that it was making thousands of jobs redundant in order to reduce costs and to be able to afford an ambitious effort to rebound from an earnings slump and recent weak market share performances. 

Several people familiar with the matter told Bloomberg, on the condition of anonymity due to the information not being made public, that the workforce reduction might be announced as early as this week.

The company is expected to report its second quarter earnings Thursday (Aug. 1), with analysts projecting that Intel would have a flat revenue compared to the same period last year.

READ NEXT: Intel Reportedly Postpones Development of $25 Billion Chip-Manufacturing Plant in Israel

Intel Sacrifices Workers for Better R&D

It is understood that Intel CEO Pat Gelsinger has been keen on spending heavily on research and development in order to improve Intel's technology and help it regain its dominance in the semiconductor industry, a niche also occupied by giants like Advanced Micro Dealers, Nvidia, and TSMC. 

It was during Gelsinger's tenure as chief executive when Intel's leadership in the niche eroded. 

The Intel boss was previously reported to embark on a plan to build factories to manufacture semiconductors for other chipmakers. 

However, VCPost previously reported that it has postponed the development of its $25 billion manufacturing plant in Israel. 

It was also revealed that Intel hired Micron Technology's Naga Chandrasekaran to become the company's chief global operations officer.

Despite the pending job cuts, Intel's shares rose by about 1% in late trading at $31.11 per share. 

READ MORE: Intel Partners with Apollo Global, Selling Stake in Irish Plant for $11 Billion