Intel Is Planning Thousands of Job Cuts in Face of PC Slump

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Intel Corp. is planning a major reduction in headcount, likely numbering in the thousands, to cut costs and cope with a sputtering personal-computer market,

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The layoffs will be announced as early as this month, with the company planning to make the move around the same time as its third-quarter earnings report on Oct. 27.

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The chipmaker had 113,700 employees as of July.

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Some divisions, including Intel’s sales and marketing group, could see cuts affecting about 20% of staff, according to the people.

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Intel is facing a steep decline in demand for PC processors, its main business, and has struggled to win back market share lost to rivals like Advanced Micro Devices Inc.

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In July, the company warned that 2022 sales would be about $11 billion lower than it previously expected.

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And Intel’s once-enviable margins have shriveled: They’re about 15% points narrower than historical numbers of around 60%.

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Intel’s last big wave of layoffs occurred in 2016, when it trimmed about 12,000 jobs, or 11% of its total.

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Intel lost its long-held technological edge, and its own executives acknowledge that the company’s culture of innovation withered in recent years.

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