Intel hopes to cut jobs and cancel some products to increase efficiency and profit
Recently, Intel announced its third-quarter 2022 financial report. Although revenue and earnings per share exceeded previous analysts’ expectations, the fourth-quarter and full-year performance outlooks did not meet market expectations. Intel is still struggling, so Intel CEO Pat Gelsinger announced a cost-cutting and efficiency-improvement plan that could cut costs by up to $10 billion between now and 2025 to cope with the impact of negative market factors such as economic downturn and inflation in the future.
Intel Core i9-13900K vs. AMD Ryzen 9 7950X, Source: Intel
Pat Gelsinger did not say what steps will be taken to cut costs by more than $3 billion a year, and the layoffs are part of Intel’s cost-cutting plan. Pat Gelsinger talks more about Intel’s potential for the next few years. Previously, in the latest earnings conference call, he highlighted upcoming products in the client and data center fields and shared next-generation chip production and process research and development.
Intel CFO David Zinsner told Barron about more specific measures, Intel will cut a “meaningful number” of employees. At the same time, the investment portfolio will be reduced, the scale of supported institutions will be rationally streamlined, and stricter cost control will be implemented in all aspects of expenditure to improve the efficiency of sales and marketing.
Intel CFO David Zinsner told Barron about more specific measures, Intel will cut a “meaningful number” of employees. At the same time, the investment portfolio will be reduced, the scale of supported institutions will be rationally streamlined, and stricter cost control will be implemented in all aspects of expenditure to improve the efficiency of sales and marketing.
According to David Zinsner, Intel appears to be taking all necessary steps, and cutting its product portfolio means some product lines may be sold or put on hold to focus resources on higher-margin products. Intel is currently betting big on its IDM 2.0 strategy and trying to separate the hardware and software design teams from the foundry business. Time will tell whether these measures will help Intel reverse its decline.
