The Walton Finance Blog

Investments  |  Finance  |  Stocks  |  Business 

Intel reportedly plans to lay off thousands of workers, with details potentially emerging alongside quarterly earnings

Investing 2023

Intel Corp. may lay off thousands of workers by the end of the month, around the same time the chip manufacturer reports quarterly results amid a tough year for semiconductor makers, according to a report late Tuesday.


Layoffs will be announced “as early as this month,” Bloomberg reported, citing unidentified sources described as having knowledge that the cuts are coming. Intel INTC, 0.02% has around 121,100 employees worldwide. While the report did not include geographical specificity concerning the targeted jobs, it said the sales and marketing departments could see up to 20% reductions in staff.


The last time Intel laid off a large number of workers was back in April 2016, when the Santa Clara, Calif.–based chip company announced it was cutting 12,000 jobs, or 11% of its workforce, on the same day it reported quarterly earnings.


Intel is schedule to report third-quarter earnings on Oct. 27. Analysts expect earnings of 34 cents on sales of $15.43 billion based on Intel’s forecast of about 35 cents a share and $15 billion to $16 billion in sales. In the year-earlier quarter, Intel reported earnings of $1.71 a share on revenue of $19.19 billion.


Ever since Intel Chief Executive Pat Gelsinger took the helm in early 2021, he’s faced an uphill battle to return the company to its former glory as a leading-edge chip manufacturer.


That means building out the company’s manufacturing capacity, which, while a popular idea during a global chip shortage, has faced criticism as the multiyear plan not only weighs heavily on margins and profitability, but comes at a time when PC demand has plummeted.