Bloomberg quoted people familiar with the matter as saying that in order to cope with the recession of personal computer market, Intel is planning major layoffs to cut costs, affecting thousands of employees.
screenshots are reported by
report pointed out that the layoffs were announced as soon as this month, and Intel announced the layoffs as soon as this month, and may take action at the same time as the third quarter financial report released on October 27. As of July, Intel has 113,700 employees.
The person familiar with the matter also said that some departments, including Intel's sales and marketing departments, will become the hardest hit areas, with layoffs likely to reach about 20%.
Intel refuses to respond to layoffs. The negative news of
was affected by negative news, Intel US stocks fell 0.6% on Tuesday and closed at $25.04. The company's share price has fallen by more than 50% this year.
International e-commerce information learned that Intel's last major layoff was in 2016, when 12,000 jobs were abolished, accounting for 11% of all; then small-scale layoffs were carried out, closing some departments including mobile network data machines and drones. Intel froze personnel recruitment earlier this year as market conditions worsen this year and concerns about a recession increased.
BloombergIndustry research analyst Mandeep Singh mentioned in his research report that Intel's latest layoffs may be to reduce fixed costs, about 10% to 15%, at least between $25 billion and $30 billion.
According to IDCh data, PC sales in the third quarter fell by 15% compared with the same period last year. HP , Dell and Lenovo , which use Intel processors, all saw a sharp decline.
Intel CEO Pat Gelsinger mentioned that as PC demand weakens, Intel may reduce dividends to offset the cash flow situation, but the company plans to sell its stake in its Mobileye autonomous driving business in its initial public offering, which will help alleviate the situation.
According to Gartner data, global PC shipments fell by 19.5% year-on-year in the third quarter, the largest drop in more than 20 years. In the latest quarter, computer manufacturers shipped 68 million units, down from 84.5 million units a year ago.
There is no doubt that Intel is currently in an embarrassing situation. First, it needs to cope with the pressure of continued decline in PC demand, and second, it needs to expand US investment, and it also needs to face pressure from investors.
Editor: Elaine
