High inflation and the re-opening of offices and schools have led to the personal computer market slowing down, Intel Corporation is planning to reduce major headcount. This would have a major impact on many employees. Twenty per cent of the sales and marketing group would also be affected, as the layoffs will be announced as early as this month. However, Intel has declined to comment on any job cuts.
The company had around 113,700 employees as of July as it slashed its annual sales and profit forecasts after missing estimates for second-quarter results.
Chipmakers are also under pressure from COVID-19 curbs in key PC markets. The China and Ukraine conflict has led to supply-chain snarls and also weighed on demand.
Intel’s Chief Executive Officer Pat Gelsinger recently released a memo to company employees, outlining plans to create an internal foundry model for external customers and the company’s product lines.
A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Co is the top player in that space. Intel has mainly built chips it designed itself so far.
