Highlight
- Intel likely to lay off people from both operations and sales departments
- Earlier reports said Intel was planning job cuts that could run into the thousands
- Intel posted revenue of $15.3 billion in Q3, flat sequentially
Chip-maker Intel will soon begin laying off employees as the company plans to drive annual savings of about $3 billion in the near term and $8 billion to $10 billion by the end of 2025, and these savings will be majorly will come from “the cost of the people”. From both operations and sales departments.
We are responding to the current environment by taking aggressive actions to reduce costs while carefully protecting the investments needed to accelerate our transformation, Intel CEO Pat Gelsinger said during the company’s third-quarter earnings call. Making sure we are well positioned for the long term market. growth.
“In addition to reducing near-term costs, we have also identified structural cost reductions and efficiency drivers. Overall, our efforts are expected to generate $3 billion in near-term annual savings and $8 billion by the end of 2025. Should drive up to $10 billion.” Gellinger said late Thursday.
“Inclusive in our efforts will be steps to optimize our headcount. These are difficult decisions affecting our loyal Intel family, but we need to balance the increased investment,” the Intel CEO announced.
“We will begin by 2023 with a focus on $3 billion in cost reductions, one-third in cost of sales and two-thirds in operating expenses,” the company said.
Reports emerged earlier this month that the chip-maker is planning job cuts that could run into the thousands, especially to its sales and marketing teams, as consumer PC sales remain low globally.
Intel posted $15.3 billion in revenue in Q3, flat sequentially. Operating loss was $378 million, compared to $156 million year over year “due to softer demand and product readiness impacting inventory valuations”.
Operating income was $142 million, up from $15 million from Q3 2021, primarily due to higher revenue, the company said.
Gelsinger said the company is not satisfied with the results and “we remain laser-focused on controlling what we can do, and we are pleased that our PC share stabilized in Q2 and is now showing meaningful improvement in Q3.” “.
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