Intel Corp. is planning to drastically cut its workforce. which tends to number in the thousands To reduce costs and cope with the rising personal computer market. According to information from people who have knowledge of the situation
The dismissal will be announced early this month. The company plans to do so around the same time as it reported its third-quarter results on Oct. 27. The chipmaker had 113,700 employees as of July.
some agencies This includes Intel’s sales and marketing group, potentially seeing a staff cut of about 20%, according to people familiar with the situation.
Intel is facing a sharp drop in demand for PC processors. which is the main business and trying to beat the market share lost to rival Advanced Micro Devices Inc. in July. The company warns that sales in 2022 will be below $11 billion. previously expected Analysts had forecast third-quarter revenue to fall nearly 20 percent, and Intel’s enviable gross margin was down, roughly 15 percent narrower than historical figures of 60 percent.
During its second-quarter earnings call, Intel admitted it could change its business to boost profits. “We are also reducing key expenses in calendar year 2022 and will take further action in the second half of the year,” Chief Executive Pat Gelsinger said at the time.
Intel based in Santa Clara california declined to comment on the dismissal of the employee.
Intel’s last big wave of layoffs came in 2016, when it laid off about 12,000 jobs, or 11 percent of the total. including mobile modems and drones Like other companies In the tech industry, Intel also stopped hiring earlier this year. As market conditions worsen and the fear of a recession increases.
Gelsinger took over at Intel last year and worked to restore the company’s reputation as a Silicon Valley legend. It was an uphill battle. Intel lost its long-standing technological advantage. And the company’s executives admit that the company’s culture of innovation has deteriorated in recent years.
Now that the widespread downturn is adding to those challenges, Intel’s PCs, data centers, and artificial intelligence groups face a slowdown in technology spending. which affects revenue and profit
PC sales fell 15 percent in the third quarter from a year earlier, according to IDC HP Inc., Dell Technologies Inc and Lenovo Group Ltd., which use Intel processors in laptops and desktop PCs. All of them have experienced a significant reduction.
It was a particularly awkward moment for Intel to make the cut. The company has touted heavily for a $52 billion chip-boosting bill this year. Pledged to expand production in the United States, Gelsinger is planning a boom that includes bringing the world’s largest chip manufacturing hub to Ohio.
meanwhile The company is under heavy pressure from investors to make a profit. The company’s shares have fallen more than 50 percent in 2022, with a 20 percent drop coming just last month.
US tensions With China, it also affects the future of the chip industry. Biden’s administration announced new export controls on Friday. It limits what US tech companies can sell to Asian countries.
Intel’s chief financial officer, David Zinsner, said after the company’s latest quarterly report: “There are plenty of opportunities for Intel to improve and deliver the highest output per dollar.” The chipmaker expects to see a restructuring fee in the third quarter, he said, signaling the cuts are imminent.
Some chipmakers, including Nvidia Corp. and Micron Technology Inc., have said they are now clearly regulating the layoffs. But other tech companies, such as Oracle Corp. and Arm Ltd., have already laid off their jobs.