As for Intel, things are getting worse. It has to be said that the instability problems of the 13th and 14th generation Core i chips have had a serious impact on the brand’s image. So much so that the company is reportedly on the verge of laying off 10,000 people worldwide.
Intel: new mass layoffs to come!
Rather than suffer the full force of a crisis, Intel prefers to anticipate it, and to this end is preparing to lay off large numbers of staff. Recently, instability problems with the 13th and 14th generation Core i systems have had a negative impact on the brand in a number of ways.
Firstly, the brand’s image is deteriorating. Indeed, by failing to resolve the problem quickly, the Blue are losing customers. As we’ve seen, some are turning to AMD, which represents a loss of earnings for the brand. All the more so, since this means losing customers for the next generation of processors to come: Lunar Lake. What’s more, damaged processors have to be replaced, which also has a cost.
To make up for the shortfall in sales of future CPUs, but also the costs associated with after-sales service, the company is planning to shed 10,000 employees worldwide. This would reduce the brand’s workforce from 110,000 to 100,000. The aim is to save $10 billion by 2025.
As we’ve seen, Intel is in the midst of restructuring to focus on the most promising sectors, such as AI, consumer and pro CPUs and chip manufacturing. Just recently, the company poached Naga Chandrasekaran from Micron. The aim? To develop Intel Foundry Service in order to attract even more customers, this time without skulduggery? To support this restructuring, the company is also divesting itself of other sectors. Most recently, it was NUCs that bore the brunt, and before that, server production.
Of course, this redundancy plan is not yet official, as Bloomberg has let the cat out of the bag.