Chip-maker Intel plans massive job cuts as worldwide PC sales decline

By Ayushi Garg  | Date: 2022-10-13

Chip-maker Intel plans massive job cuts as worldwide PC sales decline

Chip-maker Intel Corporation is reportedly planning mass layoffs that will mostly affect its sales and marketing staff, amidst a global slump in consumer PC sales. There are currently 113,700 employees working for the organization worldwide.

According to sources, nearly 20% of the team members in its sales and marketing teams would be affected by the layoffs. Moreover, the reductions will be revealed as early as this month, approximately at the same time as Intels Q3 earnings report on 27th October.

Gartner cited that global PC shipments reached 68 million units in the Q3 of 2022, a significant 19.5% increase over the third quarter of 2021. The market has experienced its biggest downturn since Gartner began keeping track of the PC business in the middle of the 1990s with the fourth consecutive quarter of a year-over-year decrease.

Director Analyst at Gartner, Mikako Kitagawa stated that the PC market may be seeing a historic slowdown based on this quarters findings. Despite the fact that supply chain interruptions have now subsided, huge inventories are now a significant problem because PC demand is sluggish in both the consumer and commercial industries.

In the second quarter, sales of consumer chips for Intel fell by 25%, contributing to a 22% year-over-year revenue loss of USD 15.3 billion. Furthermore, its profits plummeted as it lost half a billion dollars between April and June, a decrease of 109% from the USD 5.1 billion it earned in Q2 of last year.

According to CEO Pat Gelsinger, the performance fell short of the expectations they had for the firm and its stockholders. The most significant factor was the sharp and unexpected downturn in economic activity, but the gap also indicated problems with their own execution.

Notably, the full-year revenue forecast provided by Intel was revised from USD 65 billion to USD 68 billion. Dave Zinsner, Intels Chief Financial Officer cited that they anticipate Q2 and Q3 to be the companys financial low points.

Source Credit: https://www.business-standard.com/article/international/intel-plans-major-layoffs-this-month-as-pc-sales-nosedive-globally-report-122101200731_1.html

About Author

Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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