The news: Intel is reportedly planning thousands of layoffs as it faces declining sales of its consumer chips, per The Verge.
Effects of a declining PC market: A Bloomberg News report states a reduction in headcount is the chip giant’s response to declining demand and slowing PC sales.
The bigger tech picture: Intel CEO Pat Gelsinger noted that the company will be “lowering core expenses in calendar year 2022 and will look to take additional actions in the second half of the year.” This means the layoffs have likely been in the works for some time.
How the industry could respond: The news of impending Intel layoffs could alter a tech industry already battered by layoffs. If historically unshakable behemoths like Intel are resorting to staff cuts, then smaller companies have less chance of weathering the economic downturn.
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