Intel said to be pausing all hiring and placing all job requisitions on hold in its client computing group.
Intel shares are down nearly 28 percent over the past year
Intel has frozen hiring in the division responsible for PC desktop and laptop chips, according to a memo reviewed by Reuters, as part of a series of cost-cutting measures.
Intel is "pausing all hiring and placing all job requisitions on hold" in its client computing group, according to the memo sent on Wednesday. The memo said that some hiring could resume in as little as two weeks after the division re-evaluates priorities and that all current job offers in its systems will be honored.
"We believe we are at the beginning of a long-term growth cycle across the semiconductor industry and we have the right strategy in place," Intel said in a statement. "Increased focus and prioritisation in our spending will help us weather macroeconomic uncertainty, execute on our strategy and meet our commitments to customers, shareholders, and employees."
Intel shares are down nearly 28 percent over the past year and the company has told investors to brace for lower gross margins than it has historically earned as it spends heavily to catch up to rivals like Taiwan Semiconductor Manufacturing Co whose manufacturing technology has overtaken Intel's.
The company's client computing group is its largest by sales, generating $9.3 billion (roughly Rs. 720 crore) of its $18.4 billion (roughly Rs. 1,430 crore) in revenue in its most recent quarter. Once dominant, Intel's desktop and laptop chips face increased competition from Advanced Micro Devices, and the division lost Apple as a customer after Apple started using it own custom-designed chips.
The memo sent Wednesday also outlined other cost-cutting measures such as cancelling some travel for the group immediately, limiting participation in industry conferences and instructions to hold group meetings virtually when possible.
The hiring freeze does not appear to affect all of Intel. In a memo sent to all employees on Tuesday, Chief Executive Pat Gelsinger said the company would "slow" its hiring and would onboard 23,000 recently hired employees over the next 90 days. Intel had 121,000 employees at the end of 2021.
© Thomson Reuters 2022
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