Intel plans thousands of job cuts in face of PC slowdown
BNN Bloomberg
Intel is planning a major reduction in headcount, likely numbering in the thousands, to cut costs and cope with a sputtering personal-computer market, according to people with knowledge of the situation.
The layoffs will be announced as early as this month, with the company planning to make the move around the same time as its third-quarter earnings report on Oct. 27, said the people, who asked not to be identified because the deliberations are private. The chipmaker had 113,700 employees as of July.
Some divisions, including Intel’s sales and marketing group, could see cuts affecting about 20 per cent of staff, according to the people familiar with the situation.
Intel is facing a steep decline in demand for PC processors, its main business, and has struggled to win back market share lost to rivals like Advanced Micro Devices Inc. In July, the company warned that 2022 sales would be about US$11 billion lower than it previously expected. Analysts are predicting a third-quarter revenue drop of nearly 20 per cent. And Intel’s once-enviable margins have shriveled: They’re about 15 percentage points narrower than historical numbers of around 60 per cent.
