Chipmaker Intel is reportedly planning to remove thousands of workers from their company after they experienced a slowdown in demand.
Recently the personal computer market has been experiencing a considerable slowdown as many of their target customers are embracing smartphones and tablets.
The layoff by Intel is expected to begin at the end of this month, and as much as 20% of its current workers could lose their jobs.
As of July 2022, the company had over 100,000 employees, and laying off 20% could mean as many as 20,000 people are losing their jobs.
According to Bloomberg, financial analysts predict that traditional personal computer makers could see a drop of as much as 15% in their revenue. From what experts have to say, more people prefer to use their tablets and smartphones than PCs.
Jobs at Intel had been predicted to be at risk after the company warned in July that their sales could drop as much as $11 billion this year. Intel has also lost many market shares to its rivals Advanced Micro Devices Inc, and is still trying to recover.
At the time, the company’s CEO, Pat Gelsinger, announced that they would lower their expenses, including jobs.
“We are lowering core expenses in the calendar year 2022 and will look to take additional actions in the second half of the year,” Gelsinger said.
The company declined when Intel was approached to comment on the latest development. Tech layoffs in 2022 seem to be a common occurrence this year, as many tech companies have announced large-scale worker reductions.
Tech Layoffs 2022
Jobs at Intel are not the only ones at risk, as many companies have announced their desire to remove many people from their jobs.
According to information provided by Forbes, Meta has also made plans to cut some percentage of workers off their company. The tech giant had earlier announced a hiring freeze, and their potential layoff could affect thousands.
The Journal also reported that as many as 50 people had been alerted by Google to find a new role within the company. Those given such notification have about three months to carry out the order.
Bloomberg reported that Peloton was also planning to reduce the staff within its company by as far as 12 percent.
With the rate of layoffs occurring within tech companies, employees may need backup plans at the end of the year.