Wednesday, October 12th 2022
Intel Said to be Considering Laying Off Thousands of Staff
The world is without a doubt entering a recession and now the first rumours of mass layoffs in the tech industry are starting. According to Bloomberg, Intel is considering laying off thousands of employees as a measure to cut costs, as its businesses are slowing down. Bloomberg is mainly citing the PC market, which the publication calls Intel's main business, although Intel's Client Computing Group (CCG) does a lot more than just selling PC chips, but the group was Intel's largest source of revenue in Q2 this year by quite some margin. That said, despite a revenue of US$7.7 billion in Q2, this was down 25 percent compared to 2021, which in all fairness was a record year for most companies in the PC industry.
According to Bloomberg, Intel had 113,700 employees as of July this year and the publication said Intel is considering cutting as much as 20 percent of its sales and marketing staff. Bloomberg is expecting Intel to be looking at reducing fixed costs by 10 to 15 percent, although this is unlikely to affect key parts of Intel's business units. Last quarter, most of Intel's business units made a healthy profit, but only the Network and Edge Group had a significant revenue increase over the same quarter in 2021, with most other groups being down significantly. The third quarter results aren't expected to improve upon things, something that appears to be reflected in Intel's share price, which is down over 50 percent in 2022. That said, all of Intel's competitors are in the same boat and it's likely that we'll see more news about companies that are considering trimming back on their expenses and staff numbers in the near future. Intel is scheduled to report its third quarter earnings on the 27th of October.
Source:
Bloomberg
According to Bloomberg, Intel had 113,700 employees as of July this year and the publication said Intel is considering cutting as much as 20 percent of its sales and marketing staff. Bloomberg is expecting Intel to be looking at reducing fixed costs by 10 to 15 percent, although this is unlikely to affect key parts of Intel's business units. Last quarter, most of Intel's business units made a healthy profit, but only the Network and Edge Group had a significant revenue increase over the same quarter in 2021, with most other groups being down significantly. The third quarter results aren't expected to improve upon things, something that appears to be reflected in Intel's share price, which is down over 50 percent in 2022. That said, all of Intel's competitors are in the same boat and it's likely that we'll see more news about companies that are considering trimming back on their expenses and staff numbers in the near future. Intel is scheduled to report its third quarter earnings on the 27th of October.
84 Comments on Intel Said to be Considering Laying Off Thousands of Staff
No no no.
On top of that, it would give them more time to work out their foundry issues.
If they would just focus on cuts in these areas, they could actually retain and/or hire moar really talented people that could contribute positively to the company & it's goals...
And FYI, this applies to almost every major corporation everywhere, but I digress......rant over, I now take you back to your regularly scheduled TPU postings :D
GPU are paramount in datacenters and Intel, gaming/client aside, cannot overlook this...it's a big market
Recession or not, Intel cannot be in "stasis" as they would be crushed by Nvidia and Intel innovations. They have a roadmap, it may be delayed over technical difficulties but I wouldn't bet on GPU activity slowing down for now
Situations like the one demonstrated above are a perfect example of why nationalized, or "state owned" industries, are an excellent bulwark against the cyclical downturns of capitalism. For example, a state owned steel industry can operate with revenues that just cover costs, or even at a loss for a while, so instead of throwing out the work force, they remain employed and therefore still have disposable income to buy consumer goods. Furthermore, the state owned steel industry can keep prices on steel low by running at cost or at a loss and insulate other downstream industries that rely on that steel from the chain reaction caused by economic downturns.
Now instead of steel, imagine if that state owned industry was something even more fundamental to current industrial order: oil.
That being said: if we really are entering a recession (I don't think its 100% guaranteed yet, but the signs are pretty bad), then sales will drop, and potentially drop dramatically. Under these circumstances, you need to cut back on products and simplify your lineup. It means that there will be less marketing work to do in general, which inevitably leads to the laying off of marketing staff.
There's a difference. Marketing is important, but only if you actually have products to release. If you're cutting products and cutting costs, marketing inevitably loses "stuff to do" and it only makes sense to cut.
This is +43.4% in 2 years, and in 8 days we will have a 4th entry which will likely add another 10% to this :