Intel Considering Major Job Cuts Due to Huge Drop in Year-on-Year Revenue

2021 proved to be an excellent year for PC tech companies for various reasons. It seems abundantly clear, however, that while 2022 is still going to be a financially strong year, it’s not going to be anywhere near close to being as good. – A factor highlighted just earlier this month when AMD announced a huge dip in their projected quarterly profits for Q3 2022.

Following a report via TechPowerUp, however, Intel has just released their year-on-year figures for Q3 2022, and with a 25% drop seen in some markets, sources are claiming that the tech giant might be considering some pretty major job cuts in order to help attempt balance the figures out a bit better for the next quarter!

Intel Considers Jobs Cuts to Help Balance Huge YoY Shortfall?

Intel has confirmed that their year-on-year revenue (for Q2 2021-Q2 2022) has fallen from within each of their market sectors with only two showing growth, and even then, relatively small positives when compared to massive declines seen in other areas. – Now don’t get us wrong, the figures are still very good compared to prior years. And it should, of course, be noted that 2021 was a highly unusual year in the tech world with pretty much all companies reporting huge profits (and revenue increases) for the year.

With that being said, however, Intel is clearly worried about the huge drop in revenue. Apparently, so much so that they’re now currently considering sacking around 20% of its circa 113,700 workforce! – And the bad news for us is that it appears that their processor development and general marketing teams are the ones who are going to be hit the hardest!

Intel Kneejerks?

The problem Intel has here is that despite the fact that their overall revenue has fallen for more than a few entirely understandable reasons (and despite the fact that it was still very good compared to prior years) the vast majority of their shareholders won’t care about that. They’ll care about the fact that their dividend payout is going to be lower for Q3 2022 than it was in Q1 2021.

As such, the issue is that it’s often easier for a company to save money by sacking staff (and announcing a general move towards efficiency) than it is to attempt to get their investors to understand that one excellent year should never be expected to last forever. Particularly since we look to be heading into a general worldwide recession.

For the moment though, expect Intel to tighten its belt as it hopefully looks to turn Q4 into a mildly more positive quarter. For its staff though, we hope Intel does the decent thing by sticking with them rather than applying a kneejerk response to keep their investors happy (ie. richer).

What do you think? – Let us know in the comments!