Chip maker Intel alarmed wants to lay off thousands of employees

According to reports, chip maker Intel has imposed massive austerity measures. According to insiders, the company apparently wants to lay off thousands of employees in order to reduce costs. The US group wants to announce the layoffs this month together with the forthcoming quarterly report. Massive austerity measures are apparently imminent at Intel. Like the news agency Bloomberg citing insiders, the chip maker even feels compelled to lay off thousands of employees in order to reduce its own costs.

Intel: Do Thousands of Employees Have to Go?

Reason for the austerity course are therefore the weakening PC market and a significant drop in sales in second quarter of 2022. Compared to the previous year, the US group recorded a decline of around 22 percent. The bottom line is again a loss of 454 million US dollars. Intel now wants to counteract this negative trend. According to Bloomberg, the company could therefore announce the layoffs of thousands of employees with the next quarterly report on October 27, 2022. Accordingly, in some departments such as sales and marketing, for example, cuts of up to 20 percent are imminent.

Chip Maker Intel stock plummeting

The reasons for the weakening PC market are recession fears and ongoing supply bottlenecks. In July 2022, the chip manufacturer was therefore already forced to reduce its sales forecasts. For the full 2022 fiscal year, revenue could be around $11 billion lower than expected. The mood of investors on the stock exchange is correspondingly bad. Intel stock has fallen about 40 percent in just the past six months. In May 2022, meanwhile, the majority of shareholders voted against bonus payments for the management.

Mass layoffs in the tech industry

Intel laid off thousands of employees in 2016. At that time, around 12,000 employees had to leave the company. While competitor Nvidia does not currently want to make any job cuts, other companies such as Oracle and ARM have already cut jobs. With Intel, another tech giant could now be added. According to Bloomberg, the US group still employed 113,700 people in July 2022. In the course of the year it should be a few thousand fewer. However, the company has so far declined to m
ake an official statement.