Intel confirms new round of layoffs
In April, Intel released its first-quarter financial report for 2023, revealing its lowest quarterly revenue since 2010 and the largest quarterly loss in the company’s history. Intel CFO David Zinsner stated that the company would continue to strictly control expenditures. Reports indicate that Intel is initiating a new round of layoffs, and Tomshardware reached out to Intel for confirmation, receiving an affirmative response.
“Intel is working to accelerate its strategy while navigating a challenging macro-economic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.
“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. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.”
In its response, Intel did not specify which departments would be affected by the layoffs or the exact proportions. However, last week, analyst Dylan Patel of consulting firm SemiAnalysis stated on social media that the budgets for both client computing and data center businesses had been reduced by 10%. Factoring in fixed costs, Patel estimates a 20% layoff rate. The specific methods of reducing expenditures will be determined by individual departments. Patel also mentioned that process node progress would remain unaffected, which Intel also addressed in its response.
Although PC shipments continued to decline in the first quarter of 2023, both ASUS and Acer believe that the sluggish PC sales landscape will improve in the second half of this year. If the market recovers, it could also boost Intel’s related business performance.