The freeze will final no less than two weeks, in keeping with an inside 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 way of a slew of distinctive issues) have all not too long ago 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 signify an effort to keep away from what everybody dreads most: mass layoffs.
It’s laborious to inform which of those classes Intel’s freeze falls inside. The corporate is clearly taking part in it cool: “We imagine we’re at the start of a long-term progress cycle throughout the semiconductor trade and now we have the suitable technique in place,” Intel informed 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 staff.” Related issues have been stated simply earlier than reductions in pressure, nonetheless—particularly as tech corporations be taught to function with slimmer groups than they’ve beforehand loved.
Intel may be working to this finish with its shopper 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 progress and Apple’s pivot towards its personal chips, the shopper computing group has been pressured to rethink its technique. It will embrace different cost-cutting measures, like journey restrictions, expanded digital work, and fewer participation in trade conferences.
Regardless of a 28 p.c drop in inventory worth 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 staff over the following 90 days.