Chip manufacturer Intel announces layoffs to reduce costs

Intel will be cutting its workforce to reduce costs. The chipset maker did not disclose the exact number of jobs affected. However, it revealed that the layoffs will take place across the board. The company cited the need to accelerate its strategy in a challenging macroeconomic environment while still investing in areas core to its business, such as its U.S.-based manufacturing operations, to ensure long-term growth."We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company," an Intel spokesperson was quoted as saying.

According to reports, the semiconductor major may lay off up to 20 per cent of the employees at its client computing and data centre divisions."Very unfortunate news, but massive layoffs at Intel coming! Intel`s Data Centre and Client computing groups are receiving 10 per cent budget cuts, It`s up to divisions to figure out how to cut, given fixed costs, means as much as 20 per cent layoffs in groups," tweeted Dylan Patel, chief analyst at market research firm SemiAnalysis. Last October, Intel announced plans to cut its expenses by $3 billion this year. Intel laid off more than 500 employees in California in job cuts announced last fall, according to filings with state workforce agencies. Intel reported its largest quarterly loss in the company's history last month due to a slump in personal computer sales, with a net loss of $2.8 billion in the first quarter of the year and revenue down by 36% YoY. Despite the loss, the company still paid out $1.5 billion in dividends. The tech industry continues to experience a wave of layoffs, and Intel is the latest to join the trend, as companies try to navigate the current economic climate. LinkedIn also joined the long list of tech companies firing employees.