Intel reportedly plans to cut thousands of jobs as early as this month
Intel reportedly plans to cut thousands of jobs as early as this month
According to Bloomberg News, the giant chipmaker is planning to cut costs in the face of a slowdown in the personal computer market. Intel-owned Israeli artificial intelligence chip developer Habana Labs announced on Tuesday that it was laying off around 100 employees
Chipmaker Intel is planning a major reduction in headcount, likely numbering in the thousands, in the face of a slowdown in the personal computer market, Bloomberg News reported on Tuesday, citing people with knowledge of the situation.
The layoffs will be announced as early as this month and some of Intel's divisions, including the sales and marketing group, could see cuts affecting about 20% of staff, according to the report.
The company had 113,700 employees as of July, Bloomberg News said.
Intel declined to comment on the job cuts.
Intel-owned Israeli artificial intelligence chip developer Habana Labs, acquired for $2 billion in 2019, announced on Tuesday that it was laying off around 100 employees, which account for about 10 percent of its total workforce.
Intel in July slashed its annual sales and profit forecasts after missing estimates for second-quarter results.
Decades-high inflation and the reopening of offices and schools have led people to spend less on PCs than they did during pandemic-related lockdowns.
Chipmakers are also under pressure from Covid-19 curbs in key PC market China and the Ukraine conflict that have led to supply-chain snarls and also weighed on demand.
Intel's Chief Executive Officer Pat Gelsinger released a memo to company employees on Tuesday 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 is the top player in that space. Intel has mainly built chips it designed itself so far.
In June it was revealed that Intel had frozen hiring in the division responsible for PC desktop and laptop chips as part of a series of cost-cutting measures.
Intel told Calcalist at the time that its growth plans in Israel, including the building of a new $10 billion manufacturing center in Kiryat Gat, setting up a campus that will house 6,000 engineers in Haifa, and setting up a new R&D center in Be’er Sheva, remain unchanged.
Intel had 121,000 employees at the end of 2021, including over 15,000 in Israel, making it the country’s largest private tech employer.
