Intel Layoffs 2022: The Company’s Biggest Job Cut

The report of the intel layoffs 2022 has been breaking out from Bloomberg.

Intel is planning to reduce its employee’s head count. Intel layoffs 2022 is for cutting costs. The layoffs will be announced as early as possible. Job cuts will also affect its sales and marketing divisions.

The company demand for PC processors has declined very steeply, which is its core business. Analysts are predicting a steep drop in its 3rd quarter revenue.

Intel is also planning to take steps to improve its profits. The company is reducing its expenses and will also take additional steps for this.

Although, the Intel office in Santa Clara, California, declined to give their comment on this job cut.

The company’s biggest layoff was during the year 2016 when it cut down 12,000 job cut. After this year several small job cut was done by the company. The company is also not doing new hiring due to fear of a growing recession.

This current job cut will reduce Intel’s fixed cost up to an estimate of at least $ 25 billion to $ 30 billion, said Mandeep Singh in his note.

Gelsinger is taking steps to rewind the company’s reputation as a legend of silicon valley. In recent years the company culture of innovation and research has reduced as compared to earlier periods.

PC sales have declined very steeply as per the company and its chip user Lenovo.

As PC prices are stagnant and demand is very weak, the company may need to pursue a dividend cut to offset cash-flow headwinds, Singh said. He also added that Intel’s plans to sell shares of its Mobileye self-driving technology business in an IPO may solve this problem.

With PC prices stagnating and demand weakening, Intel also may need to pursue a dividend cut to offset cash-flow headwinds, Singh said. But Intel’s plan to sell shares of its Mobileye self-driving technology business in an initial public offering may ease those concerns, he said.

Intel is fighting on two fronts. On one front the company is under high pressure from its investors to increase its profits, as the company profits have fallen more than 50% in 2022. On another front the company have lobbied heavily for a $ 52 billion chip-stimulus bill this year, vowing to expand its manufacturing in the US which includes bringing its hub to Ohio.

US relations with China and the Biden administration’s current restriction regarding what US technologies companies can sell to the Asian nation, also have clouded the chip industry’s future.

Intel is now trying to regain its glory in the industry by releasing new PC processors and graphics semiconductors. A key strategy of the company is to sell more chips to the data-centre market, where its rivals AMD & Nvidia Corp have made inroads. The company is now looking to pursue those goals as a leaner company.