Intel plans thousands of layoffs for October amid PC plummet

Intel intends to slash its staff by as much as 20% in some divisions, according to sources with knowledge of the situation.

The mass layoff will impact thousands of jobs, and is expected to begin around the same time as the company shares its third-quarter earnings report on Oct. 27. Intel currently employs around 113,000 people around the world, including thousands across its Canadian offices.

Those teams marked for a 20% staff reduction include Intel’s sales and marketing division.

Drop in demand

Intel has experienced a steep decline in demand for PC processors, which form the backbone of its business. Over the years, the computer manufacturer has lost market share to rivals, including Advanced Micro Devices Inc.

In July, the tech company warned that 2022 sales would be as much as $11 billion off of previous estimates. Intel’s third-quarter revenue drop alone could be as much as 15%.

“We are also lowering core expenses in calendar year 2022 and will look to take additional actions in the second half of the year,” Chief Executive Officer Pat Gelsinger said during the second-quarter earnings call.

Termination from Intel

Do you work for Intel of Canada? You have rights if you are fired or laid off.

Non-unionized employees working for Intel of Canada are owed full severance pay when they lose their job. This applies even when a company downsizes or experiences tough economic realities.

A severance package in Canada can total as much as 24 months’ pay, depending on many factors. For a quick understanding of what you may be owed, use the Pocket Employment Lawyer.

LEARN MORE
• Tech industry severance packages
• Mass layoffs and termination compensation

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Don’t sign anything

Before you accept any severance offer from Intel, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.