American chipmaker Intel to layoff its workforce globally
DUBLIN: Intel intends to reduce its workforce globally. According to reports, over 5,000 staff may be laid off. Although no formal announcement has been made by Intel, worries have been expressed regarding how this decision may affect Ireland, where thousands of people work. Some sections, notably the company’s sales and marketing group, are expected to lose 20% of their workforce.
In Ireland, Intel now employs approximately 5,000 employees. According to current investment projections, it will reach 6,500. But it remains to be seen whether this increase will happen. In July, chipmaker Intel had 113,700 employees.
In 2016, Intel laid off a large number of employees. That day, the corporation laid off 12,000 workers (11 percent). Cellular modems and drone units were among the categories that were phased out.
Top executives have hinted that layoffs will be announced by the end of this month. On the 27th, the third quarter earnings report will be released. As a result, there may be a layoff announcement.
The layoffs are believed to be the result of low profitability and issues in the personal-computer sector. A glut in the market for advanced micro devices has resulted in a dramatic drop in demand for Intel’s main product, PC processors. This has had a significant impact on the company. Efforts to recapture lost market share have also been less successful.
According to IDC, the company’s PC sales dropped 15% year-on-year in the third quarter. HP, Dell, and Lenovo, which use Intel processors in laptops and desktop PCs, also saw major drops in sales.
The company recorded sales of 11.3 billion euros, less than projected in the second quarter of this year. The company’s earnings are believed to have dropped from 60% to 15% previously.
Chief Executive Pat Gelsinger had previously intimated that profit-boosting initiatives, such as cost-cutting, would be used. His response came after a significant drop in second-quarter revenue, but the company’s headquarters in Santa Clara, California, has yet to comment on layoffs.
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