Intel freezes hiring in a key division for at least two weeks
The Intel unit is responsible for PC desktop and laptop chips will also cancel some travel and cut back on industry conferences
Intel Corp is pulling back the reins on hiring for a key company division, according to a memo reviewed by Reuters.
The company is freezing hiring in the unit responsible for PC desktop and laptop chips, as part of a series of cost-cutting measures.
Other cost-cutting measures include canceling some travel for the group immediately, cutting back on industry conferences and instructions to hold group meetings virtually when possible.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Intel Processor Core i5 2500K (iStock / iStock)
The memo said that some hiring could resume in as little as two weeks.
Intel is "pausing all hiring and placing all job requisitions on hold" in its client computing group, according to the memo.
INTEL GAVE CEO PAY PACKAGE WORTH NEARLY $180 MILLION AMID TURNAROUND EFFORT
"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 prioritization in our spending will help us weather macroeconomic uncertainty, execute on our strategy and meet our commitments to customers, shareholders, and employees."
The chipmaker forecast second-quarter revenue and profit below Wall Street expectations on worries of weak demand in its largest market, PCs, and increased supply-chain uncertainty due to COVID-19 lockdowns in China.
INTEL INVESTING $100M IN EDUCATION TO BOLSTER SEMICONDUCTOR MANUFACTURING, RESEARCH
The company expects current-quarter adjusted profit of 70 cents per share on revenue of about $18 billion, below analysts' average estimate of 83 cents per share on $18.38 billion, according to IBES data from Refinitiv.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 24.05 | +0.40 | +1.69% |
The company's client computing group is its largest by sales, generating $9.3 billion of its $18.4 billion in revenue in its most recent quarter.
CLICK HERE TO READ MORE ON FOX BUSINESS
The hiring freeze does not affect all of Intel. Earlier this week, Chief Executive Pat Gelsinger said in a memo, the company would "slow" its hiring and would onboard 23,000 recently hired employees over the next 90 days.
Reuters contributed to this report.