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Intel chipmaker wants to cut thousands of jobs

The computer industry is experiencing one of the biggest downturns since the 1990s. US chipmaker Intel is also feeling this and is responding with job cuts.

According to a media report, US chipmaker Intel is planning large staff cuts in anticipation of the downturn in the computer market. The number of layoffs is likely to reach into the thousands, Bloomberg reported Tuesday, citing people familiar with the matter. The layoffs are expected to be announced by the end of the month.

Some departments, such as sales or marketing, could face cuts of up to 20% in their workforce, the report said. According to Bloomberg, the company had 113,700 employees in July. Intel initially declined to comment on the job cuts. The company lowered its full-year sales and earnings forecasts in July after missing second-quarter estimates. Since March 2022, Intel stock has been on a long-term downtrend and has lost significantly in value. A few days ago it hit a new five-year low.

The computer industry is currently experiencing the sharpest decline in nearly 30 years. According to “Handelsblatt”, more than 68 million PC units were shipped worldwide from July to September. This is a decrease of almost 20 percent compared to the same period last year.

“As supply chain disruptions finally eased, high inventory levels have become a major concern given weak PC demand in both the consumer and business markets,” Gartner analyst Mikako told Handelsblatt. Kitagawa. “The back-to-school sales ended with disappointing results, despite massive promotions and price cuts, as many consumers had bought new PCs in the past couple of years and there was no need for them.”

Other IT companies are currently experiencing a steep decline. According to “Handelsblatt”, Lenovo remains the industry leader with a market share of around 25%. The losers are HP and Acer with the biggest drops in sales of nearly 28% and nearly 26%.

The computer industry is experiencing one of the biggest downturns since the 1990s. US chipmaker Intel is also feeling this and is responding with job cuts.

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