The PC slowdown has had an impact on Intel and its operations as the company plans to cut thousands of jobs.

Intel Corporation is arranging a huge reduction in their staff numbers, most likely accumulating to thousands, as the slowdown in the PC market has heavily impacted its operations. Bloomberg news reported that the redundancies at the well-known chipmaker will be revealed as early as this month and some of the company’s divisions such as the marketing and sales group, may see cuts affecting approximately 20% of staff (bloomberg.com).

As of July, Intel Corp had 113,700 employees and within the same month the company dropped its profit forecasts and annual sales after missing estimates for second quarter figures (proactiveinvestors.com). 

It is known that chipmakers around the world are still under pressure from the post-pandemic struggles in key markets such as China, and the continuous supply chain issues from the conflict between Russia and Ukraine. Due to this Intel is really taking hits at the moment.  

Furthermore, Pat Gelsinger, Intel’s chief executive officer, released a message to the company’s employees on Tuesday outlining the plans to design an internal foundry model for external customer and the company’s product lines. A foundry business builds chips that are designed by other companies, whereas Intel has predominately built chips that it designed itself (proactiveinvestors.com).