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Intel plans major layoffs

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Intel plans major layoffs

In an effort to reduce costs, Intel will undertake large-scale layoffs
(photo: Intel)

The processor giant Intel is in an unfavorable financial situationsituation. The search for klientski products is weak, due to the surplus accumulated during the pandemic, while the company experiencewa to catch up with competitors in chips and become a big pcontract manufacturer.

As a result of forced layoffs, up to 20% of the staff in Intel’s client and server business lines may suffer, according to analyst Dylan Patel, quoted by Tom’s Hardware. According to him, the company intends to reduce its annual costs by $10 billion, or about 10%.

With such a budget adjustment, Patel believes, significant staff reductions are imperative. According to expert estimates, these cuts will amount to 20% in Intel’s server and client business lines.

Intel sources confirmed the company was laying off staff without commenting on the scale of the layoffs. Reserves for cost reduction, according to company representatives, also include optimization of the staff structure. This year, Intel has set a goal of reducing costs by $3 billion, and by 2026 – by $10 billion annually.

At its California research center, Intel plans to cut more than 500 jobs, according to recent filings with state officials. In Oregon, home to a large Intel chip plant, layoffs are also planned.

Although the company hopes for a recovery in the semiconductor market in the second half of the year, layoffs are inevitable in the medium term.

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