In light of a decline in the PC market, chipmaker Intel Corp plans to make significant cuts to its workforce. People are spending less on personal computers now than they were during the pandemic lockdown because of decades of inflation as well as the reopening of schools and businesses.
As soon as this month, Intel is expected to announce layoffs that would affect as much as 20 percent of its sales & marketing team and other departments. As of the end of July, the firm had 113,700 workers on staff.
Pat Gelsinger, CEO of Intel, recently sent a note to staff describing the company’s intentions to develop an internal foundry model for its product lines and external customers. To put it simply, a foundry manufactures chips based on designs created by other businesses. To date, Intel has primarily manufactured chips it has designed in-house.
Covid-19 restrictions in China, a major PC market, and the turmoil in Ukraine, which has disrupted supply chains and dampened demand, are also putting pressure on chipmakers.