Shulou(Shulou.com)11/24 Report--

Phoenix New Media Technology News Beijing time on October 12 news, people familiar with the matter said that in order to cut costs and deal with the slowing PC processor market, the chip giant Intel plans large-scale layoffs, the number may reach several thousand.

Intel will announce layoffs as early as this month, and the company plans to announce the decision when it releases its third-quarter results on October 27, according to people familiar with the matter. Some departments, including Intel's sales and marketing departments, will be hardest hit, with layoffs likely to be as high as 20%. As of July this year, Intel had 113700 employees.

Intel's last major layoff was in 2016, when the company cut about 12000 jobs, or 11% of its workforce. Intel is facing a sharp decline in demand for PC processors and has struggled to regain market share lost to competitors such as AMD. In July, the company warned that revenue in 2022 would be about $11 billion lower than previously expected. Analysts expect revenue to fall by nearly 20 per cent in the third quarter. Intel's once-enviable profit margin has also shrunk sharply, 15 percentage points lower than its historical margin of about 60%.

In addition, Intel plans to make a greater decision separation between chip designers and chip manufacturing plants as part of CEO Pat Pat Gelsinger's plan to reform the company and improve returns. Kissinger disclosed the new structure in a letter to employees on Tuesday, which aims to allow Intel's factory network to operate like a chip contract manufacturer, accepting orders from Intel engineers and external chip companies equally. In the past, Intel used almost only its factories to produce its own chips, but that changed after Kissinger set up a contract chip manufacturing division last year.

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