Intel reportedly plans to lay off thousands of employees, with details may appear alongside quarterly results

Intel Corp. could lay off thousands of workers by the end of the month, around the same time the chip maker reports quarterly results in a difficult year for semiconductor manufacturers, according to a report late Tuesday.

Layoffs will be announced “already this month,” Bloomberg reported, citing unidentified sources who are described as knowing the cuts are coming. Intel INTC, -0.63% has approximately 121,100 employees worldwide. While the report didn’t include geographic specifics regarding the targeted jobs, it said sales and marketing departments could see a headcount reduction of up to 20%.

The last time Intel laid off a significant number of employees was in April 2016, when the Santa Clara, California-based chip company announced it would cut 12,000 jobs, or 11% of its workforce, on the same day it reported quarterly results.

Read: Chip stocks could suffer worst year on record as scarcity and surplus spread

Intel plans to report its third quarter results on October 27. Analysts expect earnings of 34 cents on revenue of $15.43 billion based on Intel’s forecast of approximately 35 cents per share and $15 billion to $16 billion in revenue. In the year-ago quarter, Intel reported earnings of $1.71 per share on revenue of $19.19 billion.

Since Intel Chief Executive Pat Gelsinger took over in early 2021, he has had an uphill battle to return the company to its former glory as a leading chip maker.

That means building out the company’s manufacturing capacity, which, while a popular idea amid a global chip shortage, has come under criticism because the multi-year plan not only weighs heavily on margins and profitability, but comes at a time when demand for PCs is strong. decreased.

See: PC market in ‘steepest’ decline since data collection in the mid-1990s, analysts agree

Also: AMD warning prompts analysts to reconsider if PC chips market has already bottomed out

Last year, Gelsinger defended his capital plan, promising margins would remain “comfortably above 50%,” a promise that milk loved nine months later, as a challenging 2022 narrowed margins to about 45% in the second quarter.

Read more: Biden praises US economy’s progress at pioneering Intel plant in Ohio, even as Democratic Senate candidate there suggests president shouldn’t run in 2024

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