Intel Plans To Cut Thousands Of Jobs Hit By Demand Slowdown In PC Market: Report

The layoffs will be announced as early as this month and some of Intel's divisions, including the sales and marketing group, could see cuts affecting 20 per cent of employees, according to the report

As of July 2022, Intel Corp had 113,700 employees.

Source : Getty

In the wake of an economic slowdown in the personal computer (PC) market, US chipmaker Intel Corp is planning a major reduction in headcount, likely numbering in the thousands, Bloomberg News reported on Tuesday, citing sources privy to the development.

According to the report, the layoffs will be announced as early as this month and some of Intel's divisions, including the sales and marketing group, could see cuts affecting about 20 per cent of staff.

Intel Corp had 113,700 employees as of July, Bloomberg News said. The chipmaker, however, declined to comment on the job cuts. The company in July slashed its annual sales and profit forecasts after missing estimates for second-quarter results.

Decades-high inflation and the reopening of offices and schools have led people to spend less on PCs than they did during pandemic-related lockdowns. Chipmakers are also under pressure from Covid-19 curbs in key PC market China and the Ukraine conflict that have led to supply-chain snarls and also weighed on demand.

Pat Gelsinger, chief executive officer (CEO), Intel Corp, released a memo to company employees on Tuesday outlining plans to create an internal foundry model for external customers and the company's product lines.

A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Co is the top player in that space. Intel has mainly built chips it designed itself so far.

Another US multinational corporation Walmart Inc. laid off about 200 corporate employees as it struggles with soaring costs, bloated inventories, and weakening demand for general merchandise, Bloomberg reported.

According to the report by the news agency, the termination of jobs include staffers in last-mile delivery and merchandising, Bloomberg reported quoting sources familiar with the matter. The report said that the US retail giant will also add an unspecified number of jobs in areas such as e-commerce, health and wellness, ad sales, and supply chain.