Hard times await Intel’s employees because according to a report from Bloomberg, which was later also backed up by Reuters, the company plans to lay off thousands of employees to cut costs and increase profitability. It is hoped that these measures will save the company around $3 billion by next year.
Already last year, Intel significantly reduced its workforce from 124,000 to 110,000 employees, a cold shock that now seems to be entering its second phase. Initially, it was rumoured that another 10,000 positions would be cut, but the report has since been revised to be described as “thousands”.
The news is ill-timed given the escalating situation with failing 13th and 14th generation Intel processors, which the company has so far handled exceptionally poorly, publicly announcing that it has no plans to stop selling the chips, recall them, or extend the warranty.
Exactly how many people will ultimately be forced to leave Intel remains to be seen, but we’re keeping our fingers crossed that it affects as few as possible.