Intel Joins a Rush of Tech Companies Putting a Freeze On Hiring

Intel, one of the world's leading chipmakers, has responded to global headwinds by joining a string of other tech companies in placing a freeze on new hires as it seeks ways to cut costs. Fortune reports: "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 said in a statement provided to Fortune on Thursday, a day after Reuters reported a leaked internal memo announcing the hiring freeze at Intel. According to the memo, Intel is placing a two-week hiring freeze on its client computing group, which creates PC chips for desktop and laptop computers. Client computing is Intel's largest division by sales, generating just over 50% of the manufacturer's revenue last quarter. In April, Intel issued weaker-than-expected profit guidance for the second quarter, citing reduced PC chip sales. But Citi's semiconductor analyst, Christopher Danely, predicts Intel will miss its weak second-quarter guidance, following negative comments Intel CFO David Zinsner made at a Bank of America conference on Tuesday. "Weaker" macroeconomic conditions are "clearly going to impact" Intel's earnings, Zinsner said, adding that "the circumstances at this point are much worse than what we had anticipated coming into the quarter."

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