Intel Stock Pops as Restructuring Plan Targets 20% Staff Cut

Intel Corp (NASDAQ:INTC) is up 5.6% in pre-market trading, after reports surfaced that the chipmaker is preparing to cut more than 20% of its staff. According to Bloomberg, the layoffs are part of a broader effort to streamline management and restore an engineering-driven culture. The move would mark the first major restructuring under new CEO Lip-Bu Tan, who took the helm in March.

Down 14.1% so far this month, Intel stock is attempting a sharp rebound, on track to open back above the $20 level. The rally also positions the equity to erase its 2.7% year-to-date deficit. While INTC still sports a steep 43.3% loss over the last 12 months, today’s surge may help it reclaim of support at its short-term 10-day moving average.

The news could also prompt options traders to unwind some of their bearish bets. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Intel stock's 10-day put/call volume ratio sits in the 76th percentile of its annual range -- pointing to a heavier-than-usual appetite for puts in recent weeks.

Analyst sentiment is ripe for a shift, too. Of the 36 brokerages covering INTC, 31 maintain "hold" ratings, and four call it a "strong sell." A round of upgrades could provide additional tailwinds, if Wall Street warms to the restructuring plan.