Intel is reportedly planning to lay off thousands of employees.

Intel, which employs more than 100,000 employees, is reportedly planning to lay off thousands of employees.

Bloomberg reports that Intel plans to lay off thousands of employees as it cuts costs to cope with a slowdown in the global personal computer market. The company’s sales and advertising teams are among the departments that will be cut the most, with around 20% of employees likely to lose their jobs, the report said, citing a source familiar with the matter.

Intel announced that it will reduce staff. No confirmation yet. Intel currently has about 113,700 employees. On October 27, the company will release its 2022 third quarter earnings report. In the quarterly report, it is assumed that the matter of reducing the number of people will be announced. Intel said it lost half a billion dollars in the second quarter as consumer chip sales fell 25% and comprehensive income plunged 22%.

The last time Intel laid off a large number of employees was in 2016, when about 12,000 employees were laid off. According to market analysts’ estimates, Intel’s revenue for the third quarter is expected to decline by 15%. Since early 2022, Intel has warned that this year’s sales could be about $11 billion less than forecast.

According to a report by market research firm IDC, the global PC market grew by 15.3% year-on-year in the second quarter of 2022, with only 71.3 million units sold. According to Gartner’s recent report, worldwide PC shipments totaled 68 million units in the third quarter of 2022, a 19.5% drop from the previous year, and the worst sales decline since the mid-1990s.

Due to the decline in PC market sales, Intel’s income has been affected, and its main rival chipmaker, AMD, has also had to divide its market share. In 2020, Intel also lost one of its major customers, Apple. Because Cupertino-based Apple decided to use its own Apple Silicon Chips in its Macs.

Some major chipmakers, such as Nvidia and Micron Technology, have also been told to reduce staffing. Other tech giants such as Oracle and Arm are also said to have cut staff.