Bloomberg reports that Intel plans to lay off tens of thousands of employees as PC sales decline

Chipmaker Intel Corp (NASDAQ:INTC) is prepared to lay off thousands of staff in reaction to a downturn in the personal computer market, Bloomberg News said Tuesday, citing persons familiar with the subject.

According to the source, the layoffs will be announced as early as this month, and a number of Intel divisions, including the sales and marketing division, could suffer about 20% employee cutbacks.

In July, Bloomberg News reported that the company had 113,700 employees.

The business will not comment on the layoffs.

The company lowered its year sales and profit predictions in July as a result of disappointing second-quarter results.

Due to decades of rising inflation and the reopening of offices and schools, people today spend less on computers than they did during pandemic lockdowns.

Chipmakers are also under pressure from COVID-19 restrictions in China, a significant PC market, and the Ukraine conflict, both of which have generated supply-chain bottlenecks and reduced demand.

Tuesday, Intel CEO Pat Gelsinger wrote a memo to employees outlining the company's plans to create an internal foundry model for external clients and product lines.

Taiwan Semiconductor Manufacturing Co. is the market leader in the foundry industry, where it produces chips created by other companies. Intel has invented and manufactured the majority of its chips to date.