Intel Reportedly Planning Thousands Of Job Cuts Amid A Slump In PC Sales
Intel is reportedly getting ready to cut thousands of jobs as the company comes to terms with a slump in PC sales.
With Intel being the company that produces the chips for a large portion of the PC market, it stands to feel the full force of that change in buying habits.
According to a new Bloomberg report by Mark Gurman and Debby Wu, the job cuts could be announced as soon as this month. It’s thought that Intel will make the announcement around the same time as its third-quarter earnings report on October 27.
As of July, Bloomberg reports that Intel had more than 113,000 people on staff. “Some divisions, including Intel’s sales and marketing group, could see cuts affecting about 20% of staff,” unnamed sources are said to have told Bloomberg.
As for why this is happening, Intel warned as recently as July that its 2022 sales could be around $11 billion lower than expected, with the third quarter revenue expected to fall by 15% based on analyst estimates. PC sales fell 15% in the third quarter compared to the same period last year, based on IDC numbers. Intel customers like HP, Dell, and Lenovo have all been hit by poor sales.
This would be the first round of big layoffs since Intel cut jobs in 2016 when 11% of the workforce was left looking for work. That meant 12,000 people, something that could happen again within weeks.