• Another round of tech layoffs is on the way as Intel prepares for restructuring.
• A record-breaking $2.8 billion loss in Q1 2023 has forced Intel to consider cost-cutting measures, and axing staff is one of them.
• Analysts believe that 20 percent of its data centre and client computing staff may be cut.

In April, we reported on computer parts manufacturer Intel’s historic Q1 loss on the back of an unprecedented fall in PC shipments first identified near the end of 2022.

According to its latest financial results (PDF), Intel suffered a record $2.8 billion net loss as all except one of its business segments reported profits far beneath those seen in the same period a year prior. Total revenues fell from $18.3 billion to $12 billion, a 36 percent drop.

“We derive a substantial majority of our revenue from our principal products that incorporate various components and technologies,” Intel wrote in its results statement. Seeing as fewer people are purchasing its products, this led to the obvious conclusion.

As tough economic conditions continue worldwide, companies and analysts are expecting consumer constrictions to also continue. Intel, a business driven by products, is now reportedly looking to cut costs ahead of Q2.

One method the company will be doing this is through layoffs. A routine that has been practised by tech companies the world over seemingly en masse since the final months of 2022. In February, fellow PC parts manufacturer Dell cut 5 percent of its global workforce.

“Intel is working to accelerate its strategy while navigating a challenging macro-economic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company,” a company spokesperson told Tom’s Hardware in an emailed statement.

“We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.”

While Intel hasn’t indicated the extent of the layoffs, Dylan Patel of consulting firm SemiAnalysis believes them to be “massive.”

In a Twitter post, Patel shared that Intel’s data centre and client computing groups could receive a 10 percent budget cut, and could see a 20 percent reduction in staffing within both the groups.

According to multiple sources, Intel employs 131.9 thousand people around the world with operations in the US, China, Mexico and Costa Rica.

Approximately 356 925 people have been fired from tech companies since mass layoffs began in 2022, according to database and tracker Layoffs.fyi.

[Image – Photo by Slejven Djurakovic on Unsplash]