Intel joins a growing list of companies that have initiated a freeze on hiring over fears of an impending economic downturn.
After two years of significant growth, the tech industry is starting to feel the pangs of a pullback. The global pandemic helped drive spending in the cloud, as well as personal computers, tablets, gaming consoles, and more. Supply chain constraints and the semiconductor shortage helped keep demand high and profits equally high. With a return to normal, not to mention soaring inflation, tech companies are beginning to feel the pressure and are responding with hiring freezes.
“Increased focus and prioritization in our spending will help us weather macroeconomic uncertainty, execute on our strategy, and meet our commitments to customers, shareholders, and employees,” Intel said in a statement to Fortune.
According to a memo Reuters gained access to, the company is freezing hiring for its client computing group, the division that creates desktop and laptop semiconductors.
Intel is in the midst of working to turn its fortunes around. Since Pat Gelsinger became CEO, the company is trying to regain the ground it’s lost over the last few years. The company is focusing on closing the technological gap with AMD and TSMC, as well as working to increase production.
It remains to be seen what impact the hiring freeze will have on the company’s plans, let alone the economic downturn in general.