Intel (INTC) is planning layoffs & further cost-cutting measures on rough 2023 start
After a rough start to its fiscal 2023, Intel has confirmed rumors that it is planning layoffs and budget cuts in the near future.
Just a couple weeks ago, Intel shared its Q1 2023 earnings results, showing a rough start to the tech giant’s fiscal 2023 alongside much of the tech industry. Now it seems Intel is planning cost-cutting measures to tighten its belt for further quarters, including layoffs. The company shared that it will be looking to reduce its budgets and costs by as much as double digit percentages through measures that will include “workforce reductions.”
Word of Intel’s upcoming layoffs first came through rumors such as those posted by tech researcher and consultant Dylan Patel. Patel posted that Intel would be reducing budget for its Datacenter and Client computing groups by around 10 percent and the total workforce cuts could amount to 20 percent of the company’s total employees.
While these numbers currently remain unconfirmed, Intel would go on to share a statement with Tom’s Hardware that did confirm cost-cutting measures that would include layoffs have been planned and will be implemented in the near future:
This statement comes a couple weeks after Intel posted its Q1 2023 earnings results. While the company didn’t post as much in losses as was expected, it still saw a loss of $2.8 billion on the quarter and saw a stark 36 percent drop in revenue. This is compounded with the fact that Intel subsidiary Mobileye lowered its 2023 guidance due to a current price war going on in China between Tesla and other EV companies to which Mobileye lends its technology.
With upcoming layoffs essentially confirmed by Intel, we will be waiting to see how it turns out. Stay tuned as we continue to follow this story for further updates.
TJ Denzer posted a new article, Intel (INTC) is planning layoffs & further cost-cutting measures on rough 2023 start