Intel is preparing massive layoffs, possibly in the thousands, given the significant drop in demand for personal computers. The agency reports Bloomberg with reference to informed sources.
The cuts might be officially announced as early as this month, sources say. This announcement will probably be timed to coincide with the publication of the results of the third quarter, scheduled for October 27th. Currently, Intel employs regarding 113 thousand people. According to agency sources, in some divisions of Intel, for example, those responsible for sales and marketing, up to 20% of employees may be reduced.
Intel and other computer and component manufacturers are having a hard time with falling PC sales. According to the research company IDCglobal PC sales in the third quarter of this year fell by 15%, and it is estimated Gartner,– even more, by 19.5%, which is the most significant figure in at least the last 20 years.
In July, Intel already warned that annual sales would be lower than expected and amount to regarding $11 billion. Analysts polled by Bloomberg predict that the corporation’s revenue will decline by 15% in the third quarter. Intel itself declined to comment on information regarding possible cuts to Bloomberg. The last time Intel carried out significant reductions in 2016: 12 thousand people, or 11% of the total number of employees. Since that time, there have also been some minor layoffs, as well as the closure of several non-essential divisions.
