Personal computers market is going through a slowdown phase and the companies are facing the challenge of reduced revenues. Hence, according to Bloomberg Intel is also considering to reduce their workforce. Moreover, the lay-offs will impact thousands of Intel employees.
Decline in demand of personal computers
Sales of personal computers has reduced dramatically due to lifting of lockdown restrictions. In addition, the decades high inflation in Unites States is also affecting the sales of personal computers. In wake of this challenge Intel like many other tech companies is also laying-off thousands of its workers. Sources told Bloomberg that Intel may announce the lay-offs during company’s earning call of quarter three which is scheduled on October 27th. Furthermore, Bloomberg also reported that sales and marketing divisions may witness a headcount shrink of 20 percent. Intel’s workforce was 113,700 in July this year. However, Intel has not come up with a formal announcement regarding these lay-offs.
Reduction in revenues
Furthermore, the chip making company has also revised their sales and profits target for the year. Their revenue was down by 22% during the 2nd quarter compared to same time period last year. Therefore, Intel termed the revenue numbers as below the standards which it has set for the company and its shareholders. “We must and will do better. The sudden and rapid decline in economic activity was the largest driver. But the shortfall also reflects our own execution issues. We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation.” Pat Gelsinger, Intel’s CEO, said in a statement.
Lay-offs amid passing of CHIPS and Science Act of 2022
Laying-off workers will not be a very comfortable task for Intel. They pushed the federal government to pass the CHIPS and Science Act of 2022. Moreover, the federal government approved a $54 billion chip stimulus plan to boost chip production. Previously, Intel laid-off 12,000 employees in 2016 which accounted for 11% of their total workforce at the time.
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