Intel planning to cut thousands of jobs soon, know reason why

In response to a slowdown in the personal computer industry, chipmaker Intel Corp is preparing a significant decrease in employment, possibly numbering in the thousands, according to a report by Bloomberg News on Tuesday, citing people with knowledge of the matter.

 According to the source, certain of Intel's divisions, particularly the sales and marketing business, may experience layoffs affecting around 20 per cent of the workforce as early as this month.

According to Bloomberg News, the company has 113,700 employees as of July.

Intel chose not to comment on the layoffs. The company cut its year sales and profit goals in July after its second-quarter performance fell short of expectations.

People now spend less on PCs than they did during the pandemic-related lockdowns due to decades-high inflation and the reopening of offices and schools.

Chipmakers are also under pressure from COVID-19 restrictions in China, a major PC market, and the turmoil in Ukraine, which has slowed down supply chains and weighed on demand.

In a statement distributed to staff on Tuesday, Intel CEO Pat Gelsinger outlined intentions for building an internal foundry model for the company's product lines and external clients.

Taiwan Semiconductor Manufacturing Co. is the market leader in the foundry industry, which produces chips that are designed by other businesses. So far, Intel has primarily produced the semiconductors that it has created.

(With inputs from Reuters)