On Tuesday, shares of Intel Corporation (Intel stock) rose upward following the publication of a report that stated the chipmaker is getting ready to lose thousands of jobs in the coming weeks in response to the continuing decline in demand for personal computers.
According to a story published by Bloomberg late on Tuesday night, the chipmaker Intel (NASDAQ:INTC) is planning to reduce its worldwide headcount, with most of the reductions targeted at the sales and marketing departments. According to Bloomberg, the company’s restructuring plans and earnings report for the third quarter are scheduled to be released on October 27.
Intel (NASDAQ:INTC) reduced its full-year sales projection on July 29 to between $65 billion and $68 billion, following weaker-than-expected second-quarter profits. This was done due to weakening demand, supply chain disruption, and runaway inflation, all of which continue to crush demand for personal computers.
According to Intel (NASDAQ:INTC), the company’s revenues for the current quarter are projected to fall between $15 billion and $16 billion.
This week, analysts at Wells Fargo warned that “increasing concern over year-on-year data center revenue declines in 2023 will persistently weigh on shares” when they reduced their price target on the chipmaker by $13, bringing it down to $32 a share. Intel (NASDAQ:INTC) is also facing pressure in its data center chip business, another one of its businesses experiencing difficulties.
Following the example set by competitors Nvidia (NVDA) and Advanced Micro Devices (AMD), the brokerage firm warned that Intel might potentially see a writedown of its bloated inventory levels, which were estimated to be worth $12.2 billion at the end of its second quarter.
Intel Stock Price
In the first hour of trading, shares of Intel were marked 0.4% higher to change hands at $25.11 per, a move that would still leave the company down more than 50% for the year.
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Author Ivy Palinlin 
