Intel plans thousands of layoffs to cut costs

Yahoo Finance's Daniel Howley joins the Live show to discuss Intel's plans to cut costs.

影片文字轉錄稿

BRAD SMITH: Welcome back, everyone. A major headcount reduction reportedly on the horizon for Intel. Thousands of employees expected to be laid off, according to Bloomberg, as the chipmaker looks to take cost cutting measures. Yahoo Finance's Dan Howley joins us now to share the details. Dan, what do we know so far?

DAN HOWLEY: Yeah, so it looks like we're going to see potentially thousands of layoffs at Intel. The company is basically struggling with slowing demand in the PC market and, obviously, slowing sales across the board when it comes to things like servers, just as we started to see interest rates rise. And that's impacting its bottom line. And so there could be as many as thousands of these kinds of layoffs.

The company also is dealing with those kind of-- this repeated slowdown that we've seen in the PC market. Gartner had said that the market actually collapsed 19.5% in Q3 2022. So it really doesn't look great for Intel at this point. Other chip companies are dealing with the same issues, but Intel is, at this point, kind of trying to turn itself around.

They had said that they're going to build that huge mega complex in Ohio. It's not going to look good for employees that they're getting laid off. It does look like the departments are going to be something along the lines of marketing and sales. And the company does have more than 100,000 employees. So it's not as though it's clearing house by any stretch of the imagination. But it could be as many as 10%, 20% of employees.

JULIE HYMAN: Yeah, and obviously, this is part of the moves that we've been seeing by many of the chip makers. Thanks, Dan. Appreciate it.