Intel Planning a Large Number of Layoff On Staff
Intel may slash jobs this month due to falling consumer chip sales.
- Reports suggest that the layoffs are due to a drop in demand for the company’s consumer chips, which is caused by a PC industry collapse.
- Bloomberg says 20% of Intel’s sales and marketing workers would be let go.
- Intel’s third-quarter earnings announcement on October 27 may reveal reductions “as early as this month.”
- The company employs 113,700 workers. At the time, consumer chip sales dropped 25% and revenue dropped 22%.
Intel is preparing massive layoffs that might affect thousands of employees. According to Bloomberg, the layoffs are a result of a fall in demand for the company’s consumer chips, which is in turn a result of a general slump in the personal computer industry.
Reports from Bloomberg indicate that around 20% of Intel’s sales and marketing staff will be affected by the layoffs. Reductions might be disclosed “as early as this month,” perhaps on October 27 with Intel’s earnings report for the third quarter. In all, there are 113,700 people working for the organisation right now.
Sales of personal computers, which had been growing for two years before the epidemic, are now faltering. According to research published by Gartner, global shipments dropped to 68 million units in Q3 2022, down 19.5% from the same period in 2021. According to Gartner, this is the worst market drop since the firm started keeping its score in the mid-1990s.
According to Mikako Kitagawa, director of research at Gartner, “This quarter’s data might indicate a historic decline for the PC industry.” Due to a lack of necessity as many customers had bought new PCs in the previous two years, “back to school sales” concluded with poor results despite major marketing and price decreases. On the corporate side, PCs were not at the top of the priority list as IT investment was cut down due to geopolitical and economic uncertainty.
Intel mentioned these issues in its July earnings report for the second quarter. At the time, the firm reported a 22% drop in revenue and a 25% drop in sales of consumer chips. There was a net loss of $500 million for the corporation, down from a profit of $5.1 billion in the second quarter of 2021. When discussing the company’s financial outlook, Intel CEO Pat Gelsinger said, “We are reducing core spending in the calendar year 2022 and will look for further steps in the second half of the year.” It now seems that these “further steps” may be taken place at any moment.