Intel joins the list of Google, Microsoft, Amazon, and Meta, plans to cut jobs for the sustainability race
In order to decrease expenses, Intel is planning to downsize its staff. The exact quantity of job positions impacted by the chipset manufacturer has not been revealed. However, it has been disclosed that the workforce reduction will be implemented company-wide.
The company stated that in a difficult macroeconomic climate, it is necessary to expedite its strategy while continuing to invest in essential areas of its business, including its U.S. manufacturing operations, to secure sustainable expansion.
According to a statement given to Business Today, Intel is striving to expedite its plan while managing a demanding macroeconomic setting. The company is concentrating on pinpointing cost-saving measures and enhancing efficiency via various undertakings, which includes some staff reductions in specific business and functional domains throughout the organization. However, Intel is also persisting in investing in areas that are essential to its operations to guarantee its preparedness for sustainable expansion in the long run. Although these are tough resolutions, the company pledges to handle affected employees with integrity and courtesy.
Last month, Intel suffered its largest quarterly loss ever, attributed to a decline in sales of personal computers. The company recorded a net loss of $2.8 billion in the first quarter of the year, with revenue dropping by 36% YoY. Despite this setback, Intel distributed $1.5 billion in dividends.
In October of last year, a report from the Wall Street Journal alleged that Intel had implemented reductions in both employee and executive pay, which hinted at the company’s intention to decrease expenses by $3 billion in 2023 by carrying out specific job cuts.
As the current economic climate remains uncertain, companies in the tech industry are resorting to layoffs as a means of survival, with Intel being the latest to follow suit. In addition, LinkedIn has also joined the ranks of tech companies that have let go of their employees. The Microsoft-owned company has recently laid off more than 700 of its staff and even intends to close down its job search app focused on China.