Will the layoffs ever end? Intel just announced that the chipmaker is planning another round of layoffs and cost cutting measures to combat the ongoing issues with the economy.
The first half of 2023 has been an absolute bloodbath for tech industry employees, with virtually every company in Silicon Valley and beyond cutting costs by laying off employees. Sure, some CEOs are taking pay cuts, but the majority are passing the unfortunate situation onto their teams.
Now, Intel looks to join the ranks again, announcing a second round of layoffs that will impact employees across the country.
More Layoffs Coming From Intel
Reports have found that Intel is likely going to embark on some massive layoffs soon, as the company struggles to keep its footing amongst low revenue numbers for the year.
The news was broken by Dylan Patel, an analyst for research firm SemiAnalysis, and confirmed by Intel in a statement.
“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. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.” – Intel spokesperson
The number of layoffs have not been confirmed by Intel, but Patel noted that with a 10% reduction to the data center and client computing groups, it could be as much as 20% of the workforce being cut.
Intel's No Good, Very Bad Year
The tech industry has been laying off employees like it's going out of style over the last few months, but Intel has been in a class of its own when it comes to poor performance. The company has seen revenue drop substantially over the last few years, with a record $2.8 billion loss in the first quarter of 2023.
As a result, the company has been in cost cutting mode long before this news broke. In January, the company laid off hundreds of employees. After that, the company started slashing salaries of upper-level employees in hopes of keeping costs down and avoiding future layoffs.
Unfortunately, it wasn't enough, as these huge layoffs have paved the way for even more layoffs to hit the chipmaker, and there's a chance it could get worse before it gets better.
Tech Industry Layoffs Abound
In 2023, the tech industry has laid off a lot of employees. In fact, reports show that the industry has let go of more than 100,000 workers in just the last few months.
In addition to Intel, companies like Google, Microsoft, Amazon, Meta, and dozens of others have cut as few as 100 and as many as 11,000 employees from their ranks in response to the downturn in the economy.
Suffice to say, Intel likely won't be the last company to let go of a large percentage of its workforce.