After experiencing a poor financial quarter due to lower PC sales internationally and uncertain macroeconomic circumstances, American chip giant Intel is allegedly going to lay off additional employees. India Today Tech has also contacted Intel for additional information.
The business has not officially confirmed the number of layoffs. Business Today reports that Intel would eliminate positions “across the board” and that this decision was made to safeguard its long-term success.
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Following the Q3 2023 (ending in September) quarterly results, the US-based semiconductor maker made similar actions the previous year. At the time, Intel said the business intended to save expenses by shortening some of its employees’ production shifts. The initial set of layoffs, which included some workers at Intel’s Bengaluru branch, was disclosed by the business around the same time.
Intel revealed its financial results for the first quarter of 2023, which ended on March 31, last month. The corporation reported sales of $11.7 billion, a 36% decrease from the prior year. Notably, the profits were still $200,000,000 more than the corporation had anticipated in January. Additionally, the company’s gross margin dropped to 38.4% during the quarter, resulting in a $2.8 billion loss.
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The story makes no mention of whether letters of termination have begun to reach affected Intel workers. The business sent a statement to the magazine in which it stated: “Intel is attempting to accelerate its plan while navigating a difficult macroeconomic climate. Through a number of measures, including certain employee reductions targeted at particular businesses and functions throughout the organization, we are concentrating on finding cost savings and efficiency benefits. To ensure that we are well-positioned for long-term success, we continue to invest in areas that are essential to our company. We pledge to treat affected workers with respect and dignity despite the difficulty of these choices.