Intel is reportedly set to cut thousands of jobs in what would be the latest in a series of cost-cutting moves for the computer chipmaker.

Citing sources familiar with the matter, Bloomberg reported the large number of positions were to be eliminated as Intel responds to slowing demand in an increasingly competitive climate for chip manufacturers, in which it has fallen behind some rivals in the area of artificial intelligence.

Intel was not responding to media requests for comment ahead of its quarterly earnings report scheduled for Aug. 1. Intel confirmed in June that an undisclosed number of job cuts were being planned in the latest phase of reductions enacted since late 2022 by the company, based in Santa Clara, California.

The cuts arrive as Intel has joined competitors in expanding chip operations with planned new manufacturing plants across the country. But technology has been the hardest hit among several U.S. industries announcing job reductions during the past year amid slowing business and consumer demand.

Also this week, automaker Stellantis announced a new round of voluntary buyouts for its U.S. salaried workers, as part of its own cost-cutting efforts. Stellantis announced in March that it was cutting 400 salaried positions, after two rounds of buyouts during 2023, as the company deals with inflationary pressures and heightened competition.

Based in the Netherlands, Stellantis did not offer a specific count of workers in the latest buyout round, but several media outlets reported the number could be in the thousands. 

Private-sector jobs increased by 122,000 in July from the prior month, marking a slowdown from the prior month’s increase of 155,000 in the latest tracking by payroll services provider ADP and Stanford University’s Digital Economy Lab.

The report showed annual pay rising by an average of 4.8% from a year earlier, reflecting general slowing in hiring and pay growth over the past three months. Analysts note slowing job growth and easing inflation may spur the Federal Reserve to cut interest rates later this year, after the Fed left its key lending rates unchanged this week.

“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation,” ADP Chief Economist Nela Richardson said in a statement Wednesday. “If inflation goes back up, it won’t be because of labor.”

Based on anonymized payroll data on more than 25 million U.S. employees of ADP corporate clients, researchers said categories posting notable July payroll gains included trade and transportation at 61,000, construction at 39,000 and leisure and hospitality at 24,000. Notable monthly declines were posted in industries such as professional business services at 37,000, information technology at 18,000 and manufacturing at 4,000.

The ADP-Stanford report is considered a preview of the Labor Department’s monthly report slated for release later this week, tracking July’s nonfarm private and public job growth and the latest national unemployment rate. 

Construction employment rose in June from year-earlier levels in 215 or 60% of the nation’s 358 metropolitan regions, even as project demand has been declining this year in several categories, according to the Associated General Contractors of America.

“High interest rates and rising vacancies have depressed construction of developer-financed projects such as apartments, offices, and warehouses in some markets,” Ken Simonson, the trade group’s chief economist, said in a statement. “Nevertheless, strong demand for data centers, manufacturing and power projects, and infrastructure is keeping employment on the upswing in a majority of metros.”

Based on its analysis of Labor Department data, the trade group said the Houston region added the most jobs on an annual basis at 12,300 for a 5% increase. It was followed by Baton Rouge, Louisiana at 8,400 for an 18% gain, and the Las Vegas region at 8,200 jobs for a 10% rise.

The trade group said construction employment declined year-over-year in 97 metropolitan regions and was unchanged in 46. The largest annual decline was New York City losing 7,100 jobs for a 5% decline.