As PC shipments suffer the steepest drop since the mid-1990s, Intel is planning thousands of layoffs to shore up the company.
According to unnamed Bloomberg sources “with knowledge of the situation”, Intel will time the announcement with its third-quarter earnings report on October 27, where they are tipped to report a 15 per cent revenue drop.
As of the end of FY22, Intel had 113,700 employees. Sales and marketing division could be gutted by 20 per cent.
Given the Bloomberg report, this may be confirmed or denied sooner rather than later, but such drastic cuts make sense.
Intel shares have fallen more than 50 per cent this year, plunging 20 per cent in the last month alone.
The company saw June quarter revenue drop 22 per cent, with CEO Pat Gelsinger admitting the financials were “below the standards we have set for the company, and below the commitments we have made to our shareholders.” It was also below Wall Street estimates, to the tune of A$3.85 billion.
Intel’s data-centre division brought in A$6.58 billion for the quarter, below the expected A$8.63 billion.
Meanwhile Intel’s PC-chip unit saw sales plummet 25 per cent during the June quarter.
Gelsinger warned shareholders at the time that third quarter revenue would be worst – as much as A$15.7 billion less than projected.
He also hinted at job cuts, saying “we are also lowering core expenses in calendar year 2022 and will look to take additional actions in the second half of the year.”
Looks like one of those addition actions will be announced soon.
