December 9, 2022

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Intel is said to be planning to lay off thousands of workers, with details likely to emerge alongside quarterly earnings

Intel is said to be planning to lay off thousands of workers, with details likely to emerge alongside quarterly earnings

Intel may lay off thousands of workers by the end of the month, around the same time the chip maker reports quarterly results amid a tough year for semiconductor makers, according to a report late Tuesday.

The layoffs will be announced “early this month,” Bloomberg mentioned, citing anonymous sources described as aware that cuts are coming. Intel INTC,
-0.63%
It has about 121,100 employees worldwide. While the report did not include geographic specificity in terms of targeted jobs, it did say that sales and marketing departments could see staff reductions of up to 20%.

The last time Intel laid off a large number of workers was in April 2016, when the chip company was in Santa Clara, California. announced that it would cut 12,000 jobs, or 11% of its workforce, On the same day it announced quarterly earnings.

Read: Chip stocks could suffer their worst year ever due to the effects of shortages turning into oversupply

Intel is scheduled to report its third-quarter earnings on October 27. Analysts expect profit of 34 cents on sales of $15.43 billion based on Intel’s forecast of about 35 cents a share and $15 billion to $16 billion in sales. In the previous year’s first quarter, Intel reported earnings of $1.71 per share on revenue of $19.19 billion.

Since Intel CEO Pat Gelsinger took the helm in early 2021, he has faced an uphill battle to return the company to its former glory as a leading chip maker.

this means Building the company’s manufacturing capacity, Which, while a popular idea during the global chip shortage, has faced criticism because the multi-year plan not only weighs on margins and profitability, but comes at a time when demand for PCs has plummeted.

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We see: Analysts agree that the PC market has been in a “sharp” decline since data collection began in the mid-1990s.

also: AMD’s warning prompts analysts to reconsider whether the PC chip market has bottomed yet

Last year, Gelsinger defended his capital plan, promising that margins would remain “Comfortably above 50%,” Promise aged love milk after nine months when the challenge in 2022 was profit margins even about 45% in the second quarter.

Continue reading: Biden is touting the progress the US economy has made at Intel’s flagship plant in Ohio even as the Democratic candidate for Senate there proposes that he should not run for president in 2024