Intel CEO announces targeted layoffs
It was previously reported that Intel will announce layoffs around the third quarter of 2022, involving thousands of employees, with sales and marketing being the most affected, with a layoff that may be about 20%. Intel hopes to respond to the deteriorating PC market by cutting costs.
According to Oregon Live, Intel CEO Pat Gelsinger announced its layoff plan in a video conference with employees. The reason is that in the process of developing, manufacturing, and selling products, Intel has high costs and low profits. Pat Gelsinger said such measures are inevitable, can reduce operating costs, improve financial conditions, return to profitability as soon as possible, and will announce more details on November 1.
Image: PGelsinger
The recent global macroeconomic situation is severe, and the PC market and supply chain have already changed from a shortage of supply to an oversupply. Even if Intel receives high government subsidies, it seems difficult to reverse the downward trend in a short time. This trend is also reflected in its stock price, which has fallen 50% over the past year. Intel’s second-quarter 2022 financial report showed revenue of $15.321 billion, a year-on-year decrease of 22%, far from Intel’s original estimate of $18 billion, and a net loss of $454 million. At the same time, the net loss was $454 million, and revenue in the third quarter of 2022 is expected to fall by a further 15%.
