Semiconductor designer and manufacturer Intel plans major layoffs and spending cuts as its internal issues are compounded by a slowing global economy.

The company's revenue fell by 20 percent year over year in the last quarter, while its net profit fell by 85 percent.

The company's revenue fell across the board except for its networks and Edge division, which grew by 14 percent to $2.3 billion. In addition, its PC processor business fell 17 percent to $8.1 billion, its chip foundry business declined two percent to $171 million, and its servers and AI chips fell 27 percent to $4.2 billion.

In a recent interview, CEO Pat Gelsinger said that the company's upcoming 4th Generation Xeon Scalable chips are a positive development and "will be our fastest ever Xeon to a million units."

The next three generations of the Xeon server products are on track, according to him, and are "making very good progress." But, unfortunately, the 4th Gen 'Sapphire Rapids' has been delayed due to technical difficulties.

Despite the economic slowdown, Intel's server business has been under pressure from a resurgent AMD, which has eaten into its once-near-monopoly market share.

Intel accounted for an 86.1% market share in x86 server chips in the second quarter, down from a staggering 90.5% in the year prior - and well down from heights of 98%.

Due to internal and external pressures, Intel plans to cut costs by $3 billion in fiscal 2023 and up to $10 billion by 2025.

"These savings will be realized through multiple initiatives to optimize the business, including portfolio cuts, right-sizing of our support organizations, more stringent cost controls in all aspects of our spending, and improved sales and marketing efficiency," During an earnings call, Intel's chief financial officer, David Zinsner, said.

Zinsner told Barron's there would be a "meaningful number" of layoffs, echoing earlier reports that the company will lay off thousands.