In response to a downturn in the personal computer market, chipmaker Intel Corp is planning a significant reduction in headcount, possibly numbering in the thousands, according to a report by Bloomberg News, quoting information from individuals with knowledge of the matter.
According to the report, some of Intel's divisions, including the sales and marketing group, may experience layoffs affecting about 20% of the workforce as early as this month.
According to Bloomberg News, the company had 113,700 employees as of July.
Intel chose not to comment on the layoffs.
The company cut its annual sales and profit forecasts in July after its second-quarter results fell short of expectations.
People now spend less on PCs than they did during the pandemic-related lockdowns due to decades-high inflation and the reopening of offices and schools.
COVID-19 curbs in the important PC market are also putting pressure on chipmakers. Demand has been hampered by the conflict in China and Ukraine, which has snarled the supply chain.
In a memo distributed to employees on Tuesday, Intel CEO Pat Gelsinger outlined plans for building an internal foundry model for the company's product lines and external clients.
Taiwan Semiconductor Manufacturing Co. is the market leader in the foundry industry, which produces chips that are designed by other companies. So far, Intel has primarily produced chips that it has created.
(Source:www.ndtv.com)
According to the report, some of Intel's divisions, including the sales and marketing group, may experience layoffs affecting about 20% of the workforce as early as this month.
According to Bloomberg News, the company had 113,700 employees as of July.
Intel chose not to comment on the layoffs.
The company cut its annual sales and profit forecasts in July after its second-quarter results fell short of expectations.
People now spend less on PCs than they did during the pandemic-related lockdowns due to decades-high inflation and the reopening of offices and schools.
COVID-19 curbs in the important PC market are also putting pressure on chipmakers. Demand has been hampered by the conflict in China and Ukraine, which has snarled the supply chain.
In a memo distributed to employees on Tuesday, Intel CEO Pat Gelsinger outlined plans for building an internal foundry model for the company's product lines and external clients.
Taiwan Semiconductor Manufacturing Co. is the market leader in the foundry industry, which produces chips that are designed by other companies. So far, Intel has primarily produced chips that it has created.
(Source:www.ndtv.com)
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