A report published by Bloomberg reveals Intel’s plan to lay off thousands of workers to make up for the company’s significant revenue declines in 2022.
After very good results over the past two years, the American manufacturer is facing a considerable drop in demand and is planning a major social plan to compensate. The sales and marketing sectors would be mainly targeted.
Results at half mast after the encouraging figures of the pandemic
The pandemic, and especially the confinements it has caused, has not been experienced by everyone in the same way. Computer manufacturers, in particular, have seen their sales explode, with exceptional results in 2020 and 2021. But this state of grace is, in all likelihood, well and truly over.
The third quarter of 2022 thus saw a drop of nearly 20% in computer sales worldwide compared to the same period the previous year. A catastrophic and almost historic drop, since such figures had not been recorded since the mid-1990s. Intel, particularly affected, since it saw its sales drop by 25% compared to last year, had nevertheless anticipated this slowdown by setting up several promotional campaigns and price reductions on its products. Insufficient measures, it seems, to stem the very largely downward trend in the sector.
Thousands of positions affected
These poor results are however not a surprise for the leaders of Intel. The company had also communicated on the subject in the second quarter of 2022, during which it lost half a billion dollars (to be put in perspective with the 5 billion in profits over the same period a year earlier). Now, considering that regaining the level of sales of last year is a lost cause, its leaders have therefore chosen another approach to regain their profitability: cut costs. And wages are, as always in this situation, on the front line.
The layoffs, which are likely to number in the thousands and be announced this month, are expected to hit the company’s sales and marketing sectors first. always according to Bloombergtheir teams could lose up to 20% of their staff.
After the announcement of the disastrous results for the second quarter of 2022, Pat Gelsinger, the group’s CEO, warned that the company would have to cut costs and planned other measures if that was not enough. It remains to be seen which ones.
Sources: The Verge, Bloomberg
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