The giant semiconductor company Intel is going to lay off thousands of its employees. The company announced the layoffs on Thursday. It said that it is going to lay off 15 percent of its total employees.
Jobs of so many Intel employees are at risk
Intel is incurring losses in its manufacturing business. The company is trying to recover from it. As part of its efforts to recover, Intel has announced several measures, which also include layoffs. The company’s layoff plan is going to affect the jobs of about 17,500 employees, which is equal to 15 percent of its total employees.
Intel fears low earnings
Intel has also announced to stop dividends from the fourth quarter to improve its financial position. In fact, in the third quarter, the company feels that its earnings are going to be less than the market’s estimates. Currently, spending on traditional data center semiconductors is decreasing worldwide. Intel was the largest company in the field of traditional semiconductors. Now the focus has increased on AI semiconductors, in which Intel is far behind its competitors.
Layoffs will happen by the end of this year
Intel’s total number of employees is currently more than 1 lakh. According to the data available till June 29, Intel’s employee count was 1,16,500. This does not include the number of employees of some of Intel’s subsidiary companies. Intel says that the proposed layoffs will be completed by the end of this year. That means the affected employees will lose their jobs within the next 5 months.
This is the reason why Intel’s situation has worsened
Intel is doing this layoff at a time when competing semiconductor companies like Nvidia and AMD are making rapid progress. Nvidia has especially made tremendous progress riding on AI. Now Nvidia is counted among the world’s biggest companies along with giants like Apple and Microsoft. Whereas Intel, which was stuck on traditional semiconductors, is now facing challenges.
Also read: Manufacturing growth slowed in July, new orders slowed down, growth in jobs continues
