'You can't do anything, the company has to survive so employees have to be fired.'
Amid the surge in inflation and the central bank's aggressive rate hikes that invite recession, computer hardware company and chip maker Intel Corp had to agree to lay off workers.
It is understood that the company plans to lay off workers as early as this month consisting of sales and marketing departments, which according to calculations will affect 20% of Intel's workforce.
According to Intel's internal sources, the company was forced to take the decision due to the decline in sales of its computer hardware products in addition to continuing to struggle with competition from Advanced Micro Devices Inc (AMD).
Last July, the company projected that sales in 2022 would drop to $11 billion, which is lower than previously expected.
According to analysts, this will affect Intel's 3rd quarter earnings by 20%.
In general, computer sales have experienced a downward trend since the restrictions related to Covid-19 are being reduced in most countries.
To make matters worse, the sanctions in China as well as the Ukraine conflict affected the world's chip supply chain, resulting in a 15% drop in sales for computer companies.
As evidence, HP Inc, Dell Technologies Inc and Lenovo Group Ltd which use hardware from Intel have reported a decline in sales of personal computers and laptops lately.
It is also not forgotten that the United States (US) is increasingly blocking Chinese component firms to the point of pressuring local companies to produce their own chips.
Back to Intel, as of the July report the company is understood to have 113,700 employees and Chief Executive Officer (CEO) Pat Gelsinger declined to comment further on the matter.
