The freeze will final not less than two weeks, based on an inner memo obtained by Reuters. It’s at present set to have an effect on solely the portion of the corporate that offers with non-Apple desktop and laptop computer chips. “All hiring and all job requisitions” will likely be on maintain as division management re-evaluates its priorities. Intel will nonetheless honor previously-extended job provides.
Intel’s freeze joins that of a number of different tech corporations. Salesforce, Uber, and Netflix (the final of which is admittedly going by means of a slew of distinctive issues) have all just lately introduced pauses of their recruitment processes because the tech increase from the final two years begins to deflate. Whereas a few of these pauses represent wholesome reconsideration of the corporate’s place in a altering market, others symbolize an effort to keep away from what everybody dreads most: mass layoffs.
It’s onerous to inform which of those classes Intel’s freeze falls inside. The corporate is clearly enjoying it cool: “We imagine we’re in the beginning of a long-term development cycle throughout the semiconductor business and we’ve got the suitable technique in place,” Intel instructed Reuters in an announcement. “Elevated focus and prioritization in our spending will assist us climate macroeconomic uncertainty, execute on our technique and meet our commitments to clients, shareholders, and workers.” Related issues have been stated simply earlier than reductions in pressure, nevertheless—particularly as tech corporations be taught to function with slimmer groups than they’ve beforehand loved.
Intel is likely to be working to this finish with its consumer computing group. This division makes up the biggest portion of the corporate’s gross sales, having generated $9.3 billion of a complete $18.4 billion in income final quarter. However the division faces extra competitors now than ever earlier than. Between AMD’s development and Apple’s pivot towards its personal chips, the consumer computing group has been compelled to rethink its technique. This may embrace different cost-cutting measures, like journey restrictions, expanded digital work, and fewer participation in business conferences.
Regardless of a 28 p.c drop in inventory value within the final yr, Intel doesn’t appear to be pausing hiring throughout all departments. CEO Pat Gelsinger has promised the corporate will proceed to onboard 23,000 workers over the following 90 days.