Intel Corp, one of the largest chipmakers in the entire world is planning to deal a huge low blow to its employees. The reports are coming in that Intel Corp is coming up with a plan of reducing its headcount.
Intel Corp to Reduce Headcount
Intel Corp has announced that it is planning to reduce its headcount. The major setback for the company is that it is not planning to reduce its headcount by a few hundred but in thousands.
The officials at Intel Corp have revealed that they have witnessed a significant slowdown in the PC market. Customers not spending much money on personal computers, which is taking a toll on their business.
Therefore, their company is going into a loss and not generating enough revenue. As the demand is very low, they had no choice but to reduce headcount they have to cater to high demand.
Intel Corp to Announce the Reduction Mid-October
The people familiar with the situation and Intel Corp’s decision have hinted that the company may announce the reduction somewhere towards the mid of October.
It has been confirmed that the majority of the cut-offs would be from the market and the sales divisions of Intel Corp. To be precise, Intel Corp may announce cutting its headcount by 20%.
As of July, the total employees of Intel Corp had 113,700. Keeping the July figure in mind, Intel Corp may announce laying off around 22,500 employees citing the company’s overall performance.
Following the claims, multiple reporting firms tried getting in touch with Intel Corp for a comment. However, Intel Corp is yet to respond to their request for a response.
Intel’s Declining Performance
Intel has been facing a major negative impact ever since the macroeconomic conditions have taken a major downturn.
Intel is not the only tech and chipmaker that has recorded significant losses in terms of revenues and profits. All major tech companies and chipmakers have faced a similar downfall and the situation is not fixed at all.
Whether it is AMD or Nvidia, all major chipmakers have been witnessing great declines in their sales and revenues in recent quarters.
It was in the month of July when Intel announced that it was citing a decline in its sales and demand. In light of the events, Intel had no choice but to lower its annual profit and sales forecasts.
The reason behind Low Sales
According to Intel, there are two major factors currently causing a decline in their business. The first major factor is the growing inflation all over the world.
Due to the constant rise in inflation rates, people have no choice but to micromanage their expenditures. As of now, purchasing new personal computers is the least of their worries.
The second major factor is the children going back to school and people going back to their offices after the pandemic lockdowns have been lifted.
As things are coming back to normal, people are getting out of their houses and the demand for personal computers has dropped tremendously.