Intel, the global chip maker for personal computers, is gearing to fire employees in California. As per the Worker Adjustment and Retraining Notifications, Intel will begin its layoffs from 31 Jan, 2023. While it is reported that 111 employees will be laid off from Folsom, California, the other 90 employees will be laid off from Santa Clara, California, where the Company is headquartered.
In October, there were reports that Intel was planning to cut 12,000 jobs largely in the sales and marketing divisions. The reason behind the decision was said to be the dip in sale of chips due to falling demand for personal computers adversely affecting the sale of PCs.
These layoffs are part of a major cost-cutting exercise.
As per media reports, the Company has granted unpaid leave to workers at its factories, worldwide. As per the firm, retaining workers in factories is their top priority as part of a long-term sustainability plan. In fact, in Ireland, Intel has reportedly offered unpaid leaves to various employees.
Intel has witnessed a decline in net income and sales in the third quarter of this fiscal year. It has reported a 59 per cent year-over-year decline in net income to $2.4 billion and a 15 per cent year-over-year drop in sales to 15.3 billion in its third fiscal quarter ended 1 Oct. Experts have attributed this downturn in business to macroeconomics challenges.
In the coming days, more layoffs may be witnessed at Intel.
