Intel plans to lay off workers to cut costs and adapt to a weaker PC market. Several thousand jobs likely to be cut, reports say Bloomberg He points to sources with knowledge of the situation.
The chip giant is said to be announcing the cuts this month — possibly around the time the company’s presentation of quarterly numbers, which is scheduled for October 27.
In July, Intel had 113,700 employees, according to Bloomberg.
And news agency sources say some departments at Intel could see cuts of about 20 percent, including its sales and marketing division.
Saves about $300 billion
The new cuts will reduce Intel’s fixed costs by 10 to 15 percent, Bloomberg Intelligence analyst Mandeep Singh said in a note. This would correspond to cuts of between 25 and 30 billion dollars – up to 320 billion NOK.
Intel announced this summer that its sales this year will be about $11 billion weaker than previously estimated. The company also stopped hiring earlier this year.
Among analysts, third-quarter revenue is expected to show a decline of about 15 percent, according to Bloomberg, which also indicates that Intel’s margins are about 15 percentage points lower than historical levels of about 60 percent.
The company’s previous major downsizing round took place in 2016, when about 12,000 jobs were cut — equivalent to about 11 percent of the total workforce at the time.
half in the stock market
Figures from research firm IDC showed a 15 percent drop in PC sales in the third quarter, compared to the same period last year.
PC makers HP, Dell, and Lenovo, all of which use Intel processors, have experienced sharp declines.
So far this year, Intel shares are down more than 50 percent. In the last month alone, the stock is down 20 percent. On Tuesday, it ended at $25.04 in New York trading, down 0.6 percent.
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