Artificial intelligence chip developer, Habana Labs, just laid off over 10% of its workforce, just as Intel plans to layoff up to 20% of its employees.
Intel’s Habana Labs Cuts Over 10% Of Workforce!
Intel acquired artificial intelligence chip developer Habana Labs in 2019 for $2 billion. The acquisition allowed Habana Labs to rapidly increase its workforce from 180 people to over 900.
That breakneck expansion has not only come to a shuddering halt, it is being reversed – Habana Labs is laying off 100 of their employees. According to an Intel statement:
Habana Labs was founded by David Dahan and Ran Halutz in San Jose in 2016, for the purpose of developing processors optimised for Artificial Intelligence (AI) applications.
Both Dahan and Halutz were former executives of PrimeSense Limited, which was acquired by Apple for $360 million in 2013. Its first investor and chairman was Israeli tech entrepreneur Avigdor Willenz.
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Habana Labs Cuts Employees Before Major Intel Layoffs
Habana Labs functions 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 of its staff, “as early as this month” – around the same time its third quarter earnings report is announced on October 27.
This reduction in headcount will be substantial, affecting Intel sales and marketing team the hardest – around 20% of their members are expected to receive pink slips.
This decision comes after two years of booming sales during the COVID-19 pandemic, and just as Intel is set to receive billions in funding from the US government under the CHIPS Act.
Gartner recently announced that worldwide PC shipments only totalled 68 million units in the third quarter of 2022 – a 19.5% drop from a year ago. This was the steepest market decline it recorded since it started tracking the market in the mid-1990s.
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