Intel had problems in maintaining the supply-demand balance due to the influx of people to computers during the pandemic period. Intel reported record revenue for 2021 as schools turned to distance or hybrid learning and homes to offices. The company also announced that it would invest in opening new factories. But it turned out that the rapidly rising company is now experiencing a similar decline. This problem experienced by the company will be reflected to the employees to a large extent. According to Bloomberg, Intel will make massive layoffs. Let’s take a look at the details of the news together.
Intel will lay off thousands of people!
Intel, the world’s largest and most valuable semiconductor, will make major layoffs for the first time in six years. It is estimated that the sales and marketing department will be affected the most out of the company’s 113,700 employees. The last time the major layoffs, expected to begin this month, were in 2016.
Intel
Intel reported $19.6 billion in revenue in the second quarter of 2021, with the positive impact of the pandemic. The tech giant now reported $15.3 billion in revenue in the second quarter as the pandemic is over. After these calculations, analysts make similarly pessimistic forecasts for the third quarter. It seems that the company’s high revenue forecasts for 2022 last year will not hold. Intel, on the other hand, has not yet made a statement on the layoffs.
Technology giant Intel planned to establish new factories as a solution to the demands that it could not keep up with after its sales records in 2021. In this way, the company would provide employment to thousands of people. Now, with the change in the supply-demand balance, it is eagerly awaited how the company will follow in terms of the factories it invests in and will build. Construction of one of the factories was scheduled to begin in 2023.
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