Intel plans major layoffs this month as PC sales slow: Report | Biden News


Chip maker Intel is said to be planning job cuts that may run into the thousands, particularly hitting its sales and marketing teams, as consumer PC sales worldwide.

Bloomberg reported Wednesday that the layoffs will affect nearly 20 percent of team members at its successful sales and marketing teams.

According to the report, the cuts will be announced “as early as this month,” around the same time as Intel’s third-quarter earnings report on Oct. 27.

The company currently has 113,700 employees worldwide.

Intel has yet to comment on the report.

Worldwide PC shipments totaled 68 million units in the third quarter of 2022, a whopping 19.5 percent decline from the third quarter of 2021, according to Gartner.

This is the steepest market decline since Gartner began tracking the PC market in the mid-1990s and the fourth consecutive quarter of year-over-year decline.

“The results of this quarter could mark a historic slowdown for the computer market. While supply chains have finally relaxed, high inventory has now become a major problem due to weak demand for computers in both the consumer and business markets,” said. Mikako KitagawaDirector Analyst at Gartner.

Chipmaker Intel also suffered a 25 percent decline in consumer chip sales in the second quarter (Q2), along with revenues of $15.3 billion, down 22 percent year-over-year (YoY).

Its profits fell, as it lost half a billion dollars in the April-June period – a 109 percent decline in profit from the $5.1 billion it saw in Q2 last year.

The company’s CEO Pat Gelsinger said the results “were below the standards we set for the company and our shareholders.”

“We must and will do better. The sudden and rapid decline in economic activity was the biggest driver, but the shortfall also reflects our own execution problems,” Gelsinger said in a statement.

Intel revised its full-year revenue guidance from $65 billion to $68 billion.

Dave Zinsner, Intel’s chief financial officer, said that “We expect Q2 and Q3 to be the bottom line for the company.”

Fireside Ventures closes its third fund at $225 million
Wipro’s Q2 net profit rises 3.7% to ₹ 2,659 cr sequentially, but is not as optimistic about Q3.


Source link