Semiconductor giant Intel said to plan lay-offs affecting thousands of employees to cut costs, cope with PC market slowdown
- The lay-offs are expected to be announced around the same time as Intel’s third-quarter earnings report on October 27
- The US semiconductor manufacturer had 113,700 employees as of July
The lay-offs will be announced as early as this month, with the company expected to make the move around the same time as its third-quarter earnings report on October 27, said the people, who asked not to be identified because the deliberations are private. The US chip maker 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.
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 (AMD). In July, Intel warned that 2022 sales would be about US$11 billion lower than it previously expected.
Analysts are predicting Intel to post a third-quarter revenue drop of roughly 15 per cent. And the firm’s once-enviable margins have shrivelled: they are about 15 percentage points narrower than historical numbers of around 60 per cent.
