It’s layoff season again as Big Tech and the semiconductor industry fail to meet investor expectations.
The Big Tech artificial intelligence bonanza is showing signs of fatigue as nearly every technology firm in the global top 20 saw its market capitalization shrink between July and August.
Leading the retreat is Intel, whose stocks plummeted after a disappointing Q2 earnings announcement on Aug. 1. The company failed to meet its quarterly target and wound up down 1% for revenue year-over-year.
While that doesn’t sound like a huge problem, the company took the earnings call as an opportunity to announce a 15% staff reduction. This is evidently the next phase in its plan to pivot the business toward the generative AI sector, which will result in one of the biggest tech layoffs in recent memory, with some 15,000 employees being cut.
