Intel is reportedly planning to lay off thousands of workers amid a slump in demand for PCs.
Since his return, CEO Pat Gelsinger has been working to turn Intel around and bring it back to its former glory. The company has been building new foundries in an effort to attract new business and has been working to close the technological gap with AMD and TSMC.
The company’s turnaround plans may be taking a hit, however. Bloomberg reports Intel plans mass layoffs, with thousands potentially impacted. The layoffs could be announced as early as later this month when the company announces third-quarter earnings.
According to the outlet’s sources, the cuts will especially target sales and marketing, with some departments poised to lose as much as 20% of their staff.
If the report is true, it’s the latest evidence of an economic downturn and a transition to post-pandemic normalcy. During the peak of the pandemic, computer and electronics makers couldn’t keep up with demand as record numbers of individuals worked from home and needed new computers, tablets, and smartphones to stay connected. As things have returned to normal, however, demand for products and services has dropped across industries.
Gelsinger warned in August that Intel needed “a bit of austerity” after the company posted a surprising $500 million loss. Even with the warning, however, the layoffs are sure to catch many off-guard.