INTEL Job Cut: Layoffs seem to have become a new trend in the tech industry as companies continue to announce job cuts one after the other. The latest to join this list is chip manufacturer Intel. This comes after Intel confirmed on Monday it plans to trim its workforce to bring down costs.
Though it is still not known how many workers would be affected by this decision, what looks certain is that the job cuts would take place across the company.
The chip maker has cited the necessity to improve its strategy in challenging macroeconomic conditions while still investing in areas core to its business, to ensure long-term growth.
According to USA Today, in an emailed statement the company said, “Intel is working to accelerate its strategy while navigating a challenging macro-economic environment.” “We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth.”
It is to be noted that last month Intel reported its largest-ever quarterly loss in company history amidst a decline in personal computer sales. First-quarter net loss stood at $2.8 billion, while revenue fell 36% year-over-year (YoY).
Meanwhile, in October last year, The Wall Street Journal reported that Intel was beginning targeted job cuts and intended to lower costs by $3 billion in 2023.
Chip manufacturers including Intel profited from a boom in computer and electronics sales during the pandemic as the focus shifted toward remote work and distance learning. However, in the current scenario, the market has taken a turn, as challenges including high inflation, rising interest rates and recession fears have weighed on demand.
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Intel has been one of the worst-hit companies in the chip industry due to its heavy exposure to the PC market. In the pre-market trading Tuesday, Intel shares were down 0.23% at $30.70 per piece. In another development, another tech company LinkedIn has also announced over 700 job cuts this week.
In the last six months, various tech giants including Amazon, Facebook and Google parent company Alphabet have announced layoffs. Facebook parent Meta has fired nearly 21,000 employees since late last year.