: Company's Plan Thousands of Job Cuts due to PC Downfall
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,
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
The chipmaker had 113,700 employees as of July.
Some divisions, including Intel’s sales and marketing group, could see cuts affecting about 20% of staff, according to the people.
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.
In July, the company warned that 2022 sales would be about $11 billion lower than it previously expected.
And Intel’s once-enviable margins have shriveled: They’re about 15% points narrower than historical numbers of around 60%.
Intel’s last big wave of layoffs occurred in 2016, when it trimmed about 12,000 jobs, or 11% of its total.
Intel lost its long-held technological edge, and its own executives acknowledge that the company’s culture of innovation withered in recent years.