Intel is "pausing all hiring and placing all job
requisitions on hold" in its client computing group, according to the memo
sent on Wednesday. The memo said that some hiring could resume in as little as
two weeks after the division re-evaluates priorities and that all current job
offers in its systems will be honoured.
"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."
Intel shares are down nearly 28% over the past year and the
company has told investors to brace for lower gross margins than it has
historically earned as it spends heavily to catch up to rivals like Taiwan
Semiconductor Manufacturing Co whose manufacturing technology has overtaken
Intel's.
The company's client computing group is its largest by
sales, generating $9.3 billion if its $18.4 billion in revenue in its most recent
quarter. Once dominant, Intel's desktop and laptop chips face increased
competition from Advanced Micro Devices Inc, and the division lost Apple Inc as
a customer after Apple start using it own custom-designed chips.
The memo sent Wednesday also outlined other cost-cutting
measures such as cancelling some travel for the group immediately, limiting
participation in industry conferences and instructions to hold group meetings
virtually when possible.