Chipmaker Intel Corp is planning a major reduction in headcount, likely numbering in the thousands, in the face of a slowdown in the personal computer market, Bloomberg News reported on Tuesday, citing people with knowledge of the situation.
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The layoffs will be announced as early as this month and some of Intel’s divisions, including the sales and marketing group, could see cuts affecting about 20% of staff, according to the report.
The company had 113,700 employees as of July, Bloomberg News said.
Intel declined to comment on the job cuts.
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The company in July slashed its annual sales and profit forecasts after missing estimates for second-quarter results.
Decades-high inflation and the reopening of offices and schools have led people to spend less on PCs than they did during pandemic-related lockdowns.
Chipmakers are also under pressure from COVID-19 curbs in key PC market China and the Ukraine conflict that have led to supply-chain snarls and also weighed on demand.
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Intel’s Chief Executive Officer Pat Gelsinger released a memo to company employees on Tuesday outlining plans to create an internal foundry model for external customers and the company’s product lines.
A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Co is the top player in that space. Intel has mainly built chips it designed itself so far.
