Intel has confirmed another round of layoffs, one that will impact its consumer CPU and data center divisions.
Rumors have been circulating that the embattled chipmaker planned another round of layoffs, leading Tom’s Hardware to inquire of the company. Intel provided the following statement to the outlet:
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.
While Intel’s statement does not go into detail, Tom’s Hardware reports the company is rumored to be targeting a 10% budget cut. According to SemiAnalysis’ Dylan Patel, this could translate into a 20% reduction in Intel’s workforce.
Intel is certainly facing an uphill battle to enact CEO Pat Gelsinger’s turnaround plan. Once the world’s dominant chipmaker, the company has been eclipsed in many ways and markets by rivals TSMC and AMD.
Despite efforts to reverse its fortune, Intel just turned in its worst quarterly loss in company history. If its downward trend continues, this latest round of layoffs may not be Intel’s last.
