Artificial intelligence chip developer Habana Labs just laid off more than 10% of its workforce, just as Intel plans to lay off up to 20% of its employees.
Intel's Habana Labs cuts more than 10% of its workforce!
Intel acquired artificial intelligence chip developer Habana Labs in 2019 for $2 billion. The acquisition allowed Habana Labs to quickly grow its workforce from 180 people to more than 900.
That dizzying expansion has not only come to a screeching halt, it is being reversed: Habana Labs is laying off 100 of its employees. According to a statement from Intel:
Habana Labs periodically evaluates and updates its technical and business approach to adapt to the current business reality and continue improving its competitiveness.
As part of these processes, adjustments are made to the workforce and the balance between the different disciplines on a regular basis. This is a normal process that occurs constantly and allows Habana to continue developing attractive and competitive products and solutions.
Habana Labs was founded by David Dahan and Ran Halutz in San Jose in 2016, with the purpose of developing processors optimized for Artificial Intelligence (AI) applications.
Both Dahan and Halutz were former executives at PrimeSense Limited, which was acquired by Apple for $360 million in 2013. Its first investor and chairman was Israeli tech entrepreneur Avigdor Willenz.
Recommended : Intel plans major layoffs amid market crisis!
Habana Labs cuts staff ahead of massive Intel layoffs
Habana Labs operates as an independent unit within Intel, which is why it announced its layoffs before Intel announced its own major layoffs later this month.
According to Bloomberg News, Intel is planning major layoffs “as early as this month,” around the same time its third-quarter earnings report is set to be announced on October 27.
The staff reductions will be substantial and will hit Intel's sales and marketing team hardest: around 20% of its members are expected to receive dismissal letters.
This decision comes after two years of booming sales during the COVID-19 pandemic, and just as Intel prepares to receive Billions in financing from the U.S. government under the CHIPS Act.
The PC market is currently struggling due to high inflation, New technological restrictions between the United States and Chinaand the Russian invasion of Ukraine.
Gartner recently announced that global PC shipments totaled just 68 million units in the third quarter of 2022, representing a 19.5% drop from the previous year. This was the steepest market decline it has recorded since it began tracking the market in the mid-1990s.
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