Intel Corporation is planning a major reduction in headcount, likely numbering in the thousands, in the face of a slowdown in the personal computer market, Bloomberg News reported on Tuesday.
Citing people with knowledge of the situation, the news site said the layoffs at the chipmaker will be announced as early as this month and some of Intel's divisions, including the sales and marketing group, could see cuts affecting about 20% of staff.
The company had 113,700 employees as of July, Bloomberg News said. In July, Intel slashed its annual sales and profit forecasts after missing estimates for second-quarter results.
READ: Intel shares plunge at the open after 2Q earnings target miss; full-year guidance reduction
Chipmakers globally are under pressure from COVID-19 curbs in key market China and from the Ukraine conflict that has led to supply-chain issues.
Reuters noted that Intel's chief executive officer Pat Gelsinger released a memo to company employees on Tuesday outlining plans to create an internal foundry model for external customers and the company's product lines.
A foundry business builds chips that other companies design. Intel has so far mainly built chips it designed itself.
Contact the author at jon.hopkins@proactiveinvestors.com