Intel’s business ups and downs

Like with other industries, high inflation, rising interest rates, and supply-side constraints are testing chip makers, too. But there are more headwinds dragging Intel down.

For one, PC shipments are in free fall, resulting in a drop in demand for their processors.

Then, the US commerce department dealt Intel and peers another blow with new rules, which require chipmakers to obtain individual licenses to sell advanced chips in China. Consequently, Intel can’t export any of its current-generation chips—which are smaller than the 14-nm threshold specified—into one of its major markets.

With revenue not looking up and the underwhelming Mobileye IPO on its way, Intel is getting creative with cost-saving while expanding. In a first, Intel inked a deal with Canada’s Brookfield Asset Management, which provided it with an additional $15 billion of free cash flow over several years. The private equity firm will claim a 49% stake in the project to cover half of the $30 billion Intel needs to expand its Arizona fab business.

‘Tis the season for tech layoffs

Intel isn’t the only tech company resorting to layoffs in this tough market. Just this year:

🪟 Microsoft cut around 1,000 jobs.

👻 Snap laid off 20% of its workforce as the company reported its worst earnings in five years since going public, and its stock price has slid nearly 80% this year.

📮 Flipboard booted 24 employees, a fifth of the company’s workforce, because of a struggling ad business.

🤫 Facebook parent Meta has been resorting to “quiet firing” to slim down its staff.

👥 Trading app Robinhood fired 23% of its employees to correct for over-hiring in 2021

📺 Netflix laid off some 450 workers earlier this year after losing subscribers for the first time in a decade.

🚗 Tesla scrapped 200-odd autopilot jobs

💸 Coinbase pared down its workforce by 18% due to economic headwinds and high costs

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