Intel is cutting jobs again

Intel is now reacting to the largest quarterly loss in the company’s history with a savings program and further job cuts.

Chip manufacturer Intel is reportedly facing another wave of layoffs. The company did not give exact numbers of how many employees will have to leave the company. “We are focused on cost reductions and efficiencies through various initiatives, including some business- and function-specific headcount reductions in areas across the organization,” the company said in a statement. Intel currently employs over 110,000 people worldwide.

A radical austerity program, it should probably not be. “We continue to invest in areas critical to our business, including our manufacturing facilities in the US, to ensure we are well positioned for long-term growth,” Intel said.

Record loss in the first quarter

In the communication, Intel also spoke of a “difficult macroeconomic environment” that had to be mastered. The first quarterly figures of this year show how difficult the environment is: Intel had to record the largest quarterly loss in the company’s history with a lousy 2.8 billion US dollars. On the one hand, the cooling off of the PC market after the boom at the beginning of the pandemic is giving the chip giant a hard time – sales of processors for notebooks and desktop computers fell by 38 percent to $5.8 billion. But the server division also went down again: Sales fell here by 39 percent to $3.7 billion. Intel lost market share to smaller rival AMD in the lucrative business.

Despite the poor figures, shareholders were still paid a dividend of 1.5 billion US dollars. However, the dividend will be reduced in the future. There were already job cuts at Intel last fall.