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Intel plans major layoffs this month as PC sales nosedive: Report

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chip maker Intel reportedly plans to cut jobs that could run into the thousands, particularly for its sales and marketing teams, as sales of consumer PCs worldwide take a nosedive.



Bloomberg reported Wednesday that the layoffs will affect nearly 20 percent of the team members of the successful sales and marketing teams.

The cuts will be announced “already this month,” according to the report, around the same time as Intel’s third-quarter earnings report on Oct. 27.

The company currently has 113,700 employees worldwide.

Intel has not yet commented on the report.

Global PC shipments totaled 68 million units in the third quarter of 2022, a huge drop of 19.5 percent from the third quarter of 2021, according to Gartner.

This is the strongest market decline since Gartner began tracking the PC market in the mid-1990s and the fourth consecutive quarter of a year-over-year decline.

“This quarter’s results could represent a historic slowdown for the PC market. While supply chain disruptions have finally eased, high inventory has now become a major problem given weak demand for PCs in both consumer and business markets. market,” said Mikako KitagawaDirector analyst at Gartner.

Chipmaker Intel also suffered a 25 percent drop in consumer chip sales in the second quarter (Q2), along with revenues of $15.3 billion, down 22 percent year-over-year (year-on-year).

Profits plummeted when it lost half a billion dollars in the April-June period — a 109 percent drop in profits from the $5.1 billion it saw in the second quarter last year.

CEO Pat Gelsinger said the results were “below the standards we have set for the company and our shareholders.”

“We must and will do better. The sudden and rapid decline in economic activity was the main driver, but the deficit also reflects our own implementation difficulties,” Gelsinger had said in a statement.

Intel has revised its full-year revenue forecast from $65 billion to $68 billion.

Dave Zinsner, Intel’s Chief Financial Officer, said that “we expect Q2 and Q3 to be the financial bottom for the company.”

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