Chipmaker Intel Corp (INTC.O) is planning a significant reduction in its workforce, likely totaling thousands, in the face of a downturn in the personal computer market, Bloomberg News reported on Tuesday, citing people familiar with the situation.
The layoffs will be revealed as early as this month. Notably, some of Intel’s divisions, including the sales and marketing group, could experience cuts affecting almost 20% of employees, according to the report. The company had 113,700 workers as of July, Bloomberg News said.
Intel refused to comment on the staff cuts.
The company in July reduced its annual sales and profit forecasts after failing to reach estimates for second-quarter results. Decades-high inflation and the reopening of schools and offices have caused people to spend less on PCs compared to how they did during pandemic-related lockdowns.
Buy Crypto NowChipmakers are also facing pressure from COVID-19 restrictions in major PC market China and the war in Ukraine. These factors have prompted supply-chain snarls and hampered demand. Intel’s Chief Executive Officer Pat Gelsinger issued a memo to company staff on October 11. The memo drafted plans to develop an internal foundry model for the company’s product lines and external customers.
A foundry business develops chips that other companies design and Taiwan Semiconductor Manufacturing Co (2330.TW) is the major player in that space. Intel has mostly developed chips it designed itself so far.
