It seems that the tech industry is one of the most vulnerable industries to massive layoffs. You’ve heard about companies like Google, Amazon, Microsoft, Meta, and Intel, among others, massively trimming down their workforce.
Intel has officially announced it is embarking on a new wave of layoffs to reduce costs.
New wave of layoffs
“Intel is working to accelerate its strategy while navigating a challenging macro-economic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company,” Intel said in an email.
However, the multinational corporation and technology company did not give details regarding the number of workers to be affected, though it said these layoffs would be company-wide.
One of the reasons for the massive layoffs would be its most significant quarterly loss yet in its history last month. Last month, Intel reported its most extensive quarterly loss throughout the company’s history amidst a slump in the sales of PCs. First-quarter net loss is pegged at $2.8 billion, and revenue was down 36 percent year-over-year. Yet, in spite of this loss, Intel paid out dividends of $1.5 billion.
Another reason for the layoffs would be budget reductions. However, Intel has not specified and defined the magnitude of these budget cuts. What they said is that it will keep on investing in its chip-manufacturing operations.
Similar to other companies of this size, the budget of Intel is utilized for both internal and external teams. At times, it contracts some functions like chipmaking to external firms. But this might be affected as well. Intel is reportedly reducing the outsourcing of its operations to outside businesses.
Moreover, Intel has also exited a wide range of businesses, such as its networking switches, server-building efforts, Optane Memory, 5G modems, Bitcoin-mining chips, SSD storage unit, and drone business.
“We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.” Intel added.
Other Intel news
Meanwhile, in other Intel news, a YouTube leaker revealed details saying that Intel’s Arrow Lake CPUs, which are slated to follow the trending Meteor Lake, including the Raptor Lake refresh, may arrive late in 2024 with an enormous performance boost.
The YouTube leaker, Moore’s Law is Dead, tackled in his new video Intel’s upcoming processor range, covering all the Core families.
The most crucial part is that Intel’s 15th-gen Arrow Lake’s performance core will be significantly faster than its Meteor Lake. The YouTuber said Arrow Lake would provide an Instructions per Clock (IPC) boost of 22 percent to 34 percent.
Keep browsing this website for more Intel news.
