In the midst of a persistent PC market slowdown, Intel has promised to reduce tens of thousands of jobs

In the midst of a persistent PC market slowdown, Intel has promised to reduce tens of thousands of j ...

In the face of a slowdown in the personal computer market, Chipmaker Intel is planning a significant reduction in headcount, most likely numbering in the tens of thousands, according to Bloomberg News on Tuesday, citing persons with knowledge of the situation.

The deadlines for the hires will be announced as early as this month, and some of Intel''s divisions, including the sales and marketing division, might see reductions impacting around 20% of employees, according to a new analysis.

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

Intel declined to comment on the job cuts.

After missing estimates for results from the second quarter, the company lost its annual sales and profit forecasts in July.

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COVID-19 penalties are being imposed on key PC market China and the Ukraine conflict, which have resulted in supply-chain snarls and also weighed on demand.

On Tuesday, Intel''s Chief Executive Officer, Pat Gelsinger, outlined intentions to develop an internal foundry model for external customers and the company''s products.

Taiwan Semiconductor Manufacturing Company (TSMC) is the company''s top player in the space. Intel has mainly built chips it has designed itself so far.

Intel announced in July that it would produce chips for MediaTek, one of Taiwan''s largest chip design companies.

The manufacturing arrangement is one of Intel''s most significant agreements since it started its so-called foundry business early last year.

Intel didn''t give any financial details of the transaction or stated how many chips it would be producing for MediaTek, but it stated that the first products would be manufactured in the next 18- to 24-month period and will be in a more robust technology process called Intel 16, which uses smart devices.