An American multinational corporation and technology company, Intel Corporation is planning thousands of Job cuts due to a slowdown in the personal computer market.
As per Bloomberg reports, the layoffs will affect nearly 20% of employees. The layoffs will be announced as early as this month and some of Intel’s divisions. The other departments that will be affected by the Job cuts include the sales and marketing group.
According to the reports, Intel Corporation had 113,700 employees as of July. This layoff will cause a serious reduction in headcount. However, the company has denied commenting on the job cuts.
In July, Intel cut its sales forecast for 2022 to $67 billion, down from $79 billion last year. During its second-quarter earnings call, Intel acknowledged that it could make changes to improve profits.
“We are also lowering core expenses in the calendar year 2022 and will look to take additional actions in the second half of the year,” Chief Executive Officer Pat Gelsinger said at the time.
The major reason for these layoffs is decades-high inflation and post-COVID-19 unlocking most of the offices have resumed work from offices and schools have reopened leading to the downfall of the computer market.
Additional US tensions with China also have clouded the chip industry’s future. The Biden administration announced new export curbs on Friday, restricting what US technologies companies can sell to the Asian nation.
Intel Corporation isn’t the only tech company to lay off employees. Recently, Meta was reportedly conducting ‘quiet layoffs‘ at Facebook that may lead to thousands of job cuts — at least 12,000 or about 15 percent of its workforce.
Earlier, HCL Technologies laid off 350 employees globally who were working on its client Microsoft’s news-related products.
Intel Corporation joined companies like HCL Technologies, Snap, Microsoft, Twitter, TikTok, and Google which have either laid off employees or frozen new hiring.