Intel Said to Plan Thousands of Job Cuts Amid Ongoing PC Market Slowdown

Intel's sales and marketing group could reportedly see job cuts affecting about 20 percent of staff.

Intel Said to Plan Thousands of Job Cuts Amid Ongoing PC Market Slowdown

Photo Credit: Reuters

Intel earlier slashed its annual sales and profit forecasts after missing estimates for Q2 results

Highlights
  • Intel is planning a major reduction in headcount
  • The layoffs will be announced as early as this month
  • Intel reportedly had 113,700 employees as of July
Advertisement

Chipmaker Intel is planning a major reduction in headcount, likely numbering in the thousands, in the face of a slowdown in the personal computer market, Bloomberg News reported on Tuesday, citing people with knowledge of the situation.

The layoffs will be announced as early as this month and some of Intel's divisions, including the sales and marketing group, could see cuts affecting about 20 percent of staff, according to the report.

The company had 113,700 employees as of July, Bloomberg News said.

Intel declined to comment on the job cuts.

The company in July slashed its annual sales and profit forecasts after missing estimates for second-quarter results.

Decades-high inflation and the reopening of offices and schools have led people to spend less on PCs than they did during pandemic-related lockdowns.

Chipmakers are also under pressure from COVID-19 curbs in key PC market China and the Ukraine conflict that have led to supply-chain snarls and also weighed on demand.

Intel's Chief Executive Officer Pat Gelsinger released a memo to company employees on Tuesday outlining plans to create an internal foundry model for external customers and the company's product lines.

A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Company (TSMC) is the top player in that space. Intel has mainly built chips it designed itself so far.

Back in July, Intel announced it will produce chips for Taiwan's MediaTek, one of the world's largest chip design firms.

The manufacturing arrangement is one of the most significant deals Intel has announced since it launched its so-called foundry business early last year.

While Intel didn't give any financial details of the deal or say how many chips it would be producing for MediaTek, it said the first products would be manufactured in the next 18- to 24- month period and will be in a more mature technology process called Intel 16, with the chips used for smart devices.


5G is here. Should you buy a 4G phone? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Intel, MediaTek, Layoff
House of the Dragon Requires at Least Four Full Seasons, George R.R. Martin Says
Twitter Said to Review Policies Around Permanent User Bans Ahead of Elon Musk Takeover: All Details
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »