Intel has sent out a statement confirming that it’s going to lay off a bunch of people. The company didn’t say what divisions were affected or how many people were about to lose work, but according to a tweet from Dylan Patel, who teased the news over the weekend, Intel’s Datacenter and Client computing groups are getting their budgets reduced by around 10%. Coverage from The Oregonian points out Intel’s CPU sales being down by 38% over the past six months.
“Intel is working to accelerate its strategy while navigating a challenging macro-economic environment,” reads Intel’s 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.”
“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.”
From a Tom’s Hardware report:
We heard a rumor of an impending 10% budget cut last week but could not confirm the information. However, Dylan Patel of consulting firm SemiAnalysis tweeted that Intel planned to reduce its budget by 10%, resulting in “as much as” 20% layoffs in the impacted groups. We followed up with Intel, and the company issued [a] statement to Tom’s Hardware.
Intel’s statement confirms it is reducing its workforce in specific areas but doesn’t state the number of employees impacted, or in what areas of the company. It also doesn’t define the magnitude of the budget reductions. The company says it will continue investing in its chip-manufacturing operations, a common refrain in many of its statements as it has exited several businesses yet remains focused on its IDM 2.0 objectives.
Very unfortunate news, but massive layoffs at Intel coming!— Dylan Patel (@dylan522p) May 7, 2023
Intel's Datacenter and Client computing groups are receiving ~10% budget cuts
It's up to divisions to figure out how to cut
Given fixed costs, means as much as 20% layoffs in groups
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