Intel Corp. is planning a significant reduction in headcount, possibly numbering in the thousands, to cut costs and deal with the slowing personal computer market. Intel's last significant layoffs occurred in 2016 when it cut 12,000 positions or 11% of its workforce. Since then, the company has made lesser layoffs and shut down many subsidiaries, including its drone and cellular modem units. Earlier in 2022, as market conditions deteriorated and concerns about a recession rose, Intel also froze recruiting, joining many other big companies in the technology industry.
According to GlobalData, Intel had 3,179 active jobs in September 2022, whereas in April 2022, it had 9,560 postings for job vacancies. For the period January 2022–September 2022, the company registered a 61% decrease in the number of active jobs. The rate of month-over-month growth in vacancies slowed down in May 2022.
Intel's primary business, PC processors, is seeing a sharp fall in demand, and the company has battled to reclaim the market share it lost to its competitors, such as Advanced Micro Devices Inc. The downturn in tech spending is affecting Intel's PC, data center, and artificial intelligence businesses, which is hurting the company's revenue and profit. Earlier in July 2022, the company slashed its annual revenue and profit forecast after its second-quarter performance fell short of expectations.
Due to decades-high inflation and the reopening of workplaces and schools, consumers are spending less on PCs now than they did during the Covid-19 pandemic-related lockdowns. Chipmakers are also under pressure from COVID-19 restrictions in China, a major PC market, and the turmoil in Ukraine, which has snarled the supply chain and weighed on demand.
Companies such as HP Inc., Dell Technologies Inc., and Lenovo Group Ltd. that utilize Intel processors in their laptops and desktop PCs are also experiencing sharp declines. Some chipmakers, such as Nvidia and Micron Technology Inc., have stated they're delaying layoffs for the time being. However, other major companies, such as Oracle Corp. and Arm Ltd., have already reduced their workforce. Intel has been trying to regain its footing in the industry by releasing new PC processors and graphics semiconductors. A crucial part of its strategy is selling more chips to the data-center market, where rivals AMD and Nvidia Corp. have made inroads.
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