Intel (INTC stock) appears to be poised to become the next technology corporation to announce job losses in response to a dismal macro outlook, indicating that a harsh winter is coming for the sector. There are reasons to have less pessimism, particularly from a more macro viewpoint.
Bloomberg reported on Tuesday, citing unnamed sources, that Intel ( NASDAQ:INTC ) may cut thousands of jobs around the time it reports its third-quarter earnings on October 27. The company wants to cut costs because demand for personal computers has fallen. The report was based on the fact that Intel plans to announce its earnings for the third quarter on October 27.
INTC Stock Vs Other Tech Stocks
In premarket trading in the United States on Wednesday, shares of a chip manufacturer whose microprocessors are used extensively in personal computers manufactured by companies such as HP Inc. (HPQ) and Dell Technologies (DELL) rose by 1.2%. In comparison, the S&P 500 futures price increased by 0.8%, while futures tracking the performance of the tech stock-heavy Nasdaq index increased by close to 1%.
Intel (INTC stock) would be the most recent in a line of tech companies to announce layoffs or hiring freezes this year. Microsoft (MSFT), Snap (SNAP), Netflix (NFLX), Shopify (SHOP), and other companies have all revealed plans this year to reduce the size of their workforces. Intel would be the most recent in this line of companies to make such an announcement.
The technology sector has had a difficult 2022, with shares in Intel falling by 53% and the Nasdaq falling by 34%, putting both of them well inside the bear market territory.
As a result of rising interest rates and the strong actions taken by central banks such as...
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