This Company Plans to Lay Off Thousands of Employees By October End Amid Sales Drop

New Delhi: Chipmaker Intel Corp. is planning a major reduction in headcount, likely numbering in the thousands, in the face of a slowdown in the personal computer market. According to a Bloomberg news report, the layoffs will be announced as early as this month and some of Intel’s divisions including the sales and marketing group could see staff reductions of about 20%. The company had 113,700 employees as of July, the report said.Also Read – Microsoft Cuts 1,800 Jobs as Part of ‘Realignment’, Twitter Lays Off 30% Staff From Recruiting Team

Intel, however, declined to comment on the job cuts. The company in July slashed its annual sales and profit forecasts after missing estimates for second-quarter results. Also Read – Explained | Why PlayStation, Nintendo Videogame Machines To Be In Short Supply Again This Year?

The reported layoffs come as Intel tries to claw its way back to the cutting edge of chip manufacturing and lead the US semiconductor industry to reclaim clout lost to Asia. Also Read – HP Unveils Pavilion Laptops With 12th Gen Processors in India

Chipmakers are also under pressure from COVID-19 curbs in key PC market China and the Ukraine conflict that have led to supply-chain snarls and also weighed on demand. Decades-high inflation and the reopening of offices and schools have led people to spend less on PCs than they did during pandemic-related lockdowns.

Intel’s last major round of layoffs came in 2016, when it announced it would cut 12,000 jobs, or 11% of its global workforce. The chipmaker had 113,700 employees as of July.