Intel confirms layoffs, aims to cut costs by $13 billion


Intel

According to recent reports, there is a sharp decline in demand for personal computers. That’s a tendency that has been growing in the past few years and is becoming more significant every year. The fact is that personal computers are slowly becoming a thing for business or tech enthusiasts. Several companies are suffering from decline, and Intel is not an exception. The US-based chip maker, which is a legendary name in this industry with popular CPUs like the Pentium, Celeron, and Core series plans to cut its costs on a large scale. Therefore, a series of layoffs is part of the company’s plans to cut costs by nearly $13 billion. However, these changes won’t come immediately.

Intel plans a series of cost-cutting measures for the next years

Intel CEO Pat Gelsinger said in an interview on Thursday that the company will begin targeted layoffs and will make other adjustments. These include reducing factory hours, in response to the economic downturn. He did not specify how many of Intel’s more than 120,000 employees will suffer from these changes. However, according to him, the company is actively addressing cost issues as well as improving efficiency. This goes for their entire business.

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Intel CEO
Intel’s CEO

According to the company, it is working to achieve $3 billion in cost reduction by 2023. Furthermore, the company will increase the annualized cost reductions and efficiency gains from $8 billion to $10 billion by the end of 2025. In this way, Intel will cut costs by up to $13 billion in three years. Worth noting, that Intel booked a restructuring charge of $664 million in the third quarter to reflect initial cost reductions. The shares of Intel were down 3.45% as of Thursday’s close. However, these shares jumped to 5.6 percent after the announcement of a cost-cutting plan.

Recently, Intel announced its 13th Gen Intel Raptor Lake CPU series and its ARC GPU series. The new processors bring significant upgrades over their predecessors. However, time will tell if they will be able to bring the company the revenue lost in certain segments.

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2 Comments

  1. October 31, 2022

    fire people to please shareholders. I hope these shareholders will suffer from painful cancers.

  2. November 3, 2022

    Didn’t President Biden just pass a $39 billion Chips Bill? That goes to show you, “Never pay up front! Seriously, Intel probably has a plan/// “that doesn’t include those laid off”!