Massive Layoffs and Budget Cuts Are Coming to Intel

One more tech giant revealed its plans to reduce the workforce.

Following the significant revenue losses reported by Intel a few weeks back, which showed that the company experienced its biggest ever quarterly loss of $2.8 billion, the CPU giant has issued a statement revealing its plans to lay off a major part of its workforce in order to cut costs.

As per the statement, Intel intends to concentrate on discovering ways to decrease costs and enhance efficiency through various measures, such as implementing targeted workforce reductions in specific business functions throughout the organization. Additionally, the company plans to maintain its focus on key aspects of its business, such as its US-based manufacturing operations, to ensure sustainable long-term growth.

"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 told Tom's Hardware. "We continue to invest in areas core to our business, including our US-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." 

Prior to the announcement Dylan Patel from a consulting firm SemiAnalysis tweeted about the upcoming wave of layoffs, stating that Intel intends to reduce its budget by 10%, resulting in "as much as" 20% layoffs in the company's data center and client computing groups.

Back in April, it was also reported that Intel exited its server-building business and sold it to MiTAC, an electronics manufacturer and parent of Tyan, continuing the campaign of cutting its non-core businesses.

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