That PC slowdown starts biting chip makers. Intel Corporation INTC is reportedly considering massive job cuts to bridge the current malaise.
What happened: Intel plans to announce significant headcount reductions as early as this month, which will number in the thousands. reported Bloomberg, citing people with knowledge of the matter. The announcement could come in conjunction with the chipmaker’s third-quarter results release on Oct. 27, the report said. Lines of business, including sales and marketing, are expected to shed about 20% of their jobs, the report added.
The company had 113,700 employees in July. Intel did not immediately respond gasoline ga‘s request for comment.
See also: The best semiconductor stocks
Why it matters: A preliminary report published by gardener late Monday showed that global semiconductor shipments fell 19.5% year-on-year, the sharpest decline since the company began tracking the PC market in the mid-1990s.
Intel’s peer Advanced Micro Devices Inc. AMD last week warned of revenue and gross margin shortfalls in the third quarter, citing weakness in the PC market.
To make matters worse, chip stocks face geopolitical risk as the US decided to impose licensing restrictions on the export of high-performance chips Chinaone of their key markets.
Things could be even worse for Intel, as the company has recently ceded market share to rivals like AMD, mostly due to product bugs and execution issues. chairman Pat Gelsinger announced when it announced its second-quarter results in July that the company would take steps to improve faltering margins in the second half of the year.
Price promotion: According to Intel, Tuesday’s session closed down 0.63% at $25.04 Benzinga Pro data.
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