Source: Global Times
[ Global Times report Reporter Pan Xiaotong ] According to Bloomberg on the 12th, due to the decline in sales caused by the US sanctions on China's chip industry, the US semiconductor industry giant Intel plans to lay off employees on a large scale to cut costs and deal with the difficult personal computer business.
report quoted people familiar with the matter as saying that Intel plans to announce a layoff decision while releasing its third-quarter financial report on October 27, involving departments including sales, marketing, etc., and the layoffs account for about 20% of the total number of people. As of July this year, the chip manufacturing company has a total of 113,700 employees.
It is understood that Intel's last massive layoffs occurred in 2016, when about 12,000 jobs were cut. At present, Intel is facing the dilemma of a sharp decline in demand for personal computer processors, and is also competing with competitors such as AMD Semiconductor Corporation in the United States. In July, Intel's finance department warned that sales in 2022 would be about $11 billion lower than previously expected, and analysts expect the company's third-quarter revenue to fall by about 15%. Bloomberg think tank analyst Maldip Singh said that Intel's layoffs are expected to reduce fixed costs by 10%-15%, saving the company $25 billion to $30 billion.
Bloomberg said Intel has lost its long-standing technological advantages, and its executives have also admitted that the company's innovation culture has withered in recent years. Against the backdrop of the downward trend of global economy, Intel's personal computers, data centers and artificial intelligence departments have dragged down the company's revenue.
Data from IDC, a well-known IT market research organization, showed that global personal computer sales fell by 15% in the third quarter compared with the same period last year. The global personal computer shipment report for the third quarter recently released by research firm Canalys shows that the shipment of laptop fell by 19% year-on-year, and the shipment of desktop computers fell by 11% year-on-year. Data from another research firm Gartner also showed that global shipments in the third quarter fell 19.5% from the same period last year, the biggest drop in more than 20 years. Upstream chip manufacturers are naturally also affected.
In recent years, Intel has been trying to regain the market by releasing new personal computer processors and graphics card chips. Bloomberg believes Intel is now seeking to achieve its goals by streamlining its company.
Bloomberg said that in addition to weak global demand, tensions between the United States and China have also cast a shadow on the development of the chip industry. In particular, the new restrictions on the export of semiconductor to China announced by the Biden administration have backfired on US technology companies and put pressure on semiconductor manufacturers' sales. On the day the new restrictions were released, Intel's stock price fell by 5.4%. This year, Intel's stock price fell by more than 50%, and plummeted by 20% in September alone.
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