From Tom's Hardware: Intel responded to our queries about rumors that the company is embarking on a fresh wave of layoffs that come as a result of a new 10% budget cut to its client computing group (CCG), the division responsible for producing consumer CPUs, and its data center group (DCG). The reports come as Intel continues its company-wide belt-tightening as it grapples with the worst CPU market in 30 years.
We heard a rumor of an impending 10% budget cut last week but could not confirm the information. However, Dylan Patel of consulting firm SemiAnalysis tweeted that Intel planned to reduce its budget by 10%, resulting in "as much as" 20% layoffs in the impacted groups. We followed up with Intel, and the company issued the following statement to Tom's Hardware:
"Intel is working to accelerate its strategy while navigating a challenging macro-economic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.
"We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect." Intel Spokesperson to Tom's Hardware.
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