With a dip in the sales of personal computers or PCs, Intel is reportedly planning to lay off a significant number of people, primarily from the sales and marketing divisions, which will affect about 20 per cent of the workforce.
The Company will report quarterly results on 27 October and that is when the layoffs are expected to happen, as reported by Bloomberg. About 12,000 job cuts are expected as the Company endeavours to cut costs.
By end of October, thousands will be rendered jobless, that is, about 20 per cent of the staff, as it has been a rather challenging time for manufacturers of semiconductors.
As on July 2022, Intel had a workforce strength of about 1,13,700.
Intel has been facing stiff competition in the PC processors market. In fact, the Company had predicted that its sales in 2022 would be about $11 billion less than expected. With margins having shrunk already, the revenue may drop by 15 per cent in the third quarter.
This will not be the first time that layoffs will happen at Intel. About six years ago, 11 per cent of its workforce was asked to leave on the same day that it had made its quarterly earnings public.
This year too, a similar announcement is expected when the Q3 earnings are reported later this month.