Intel Shifts Focus: Sales & Marketing Restructuring Begins

In October 2022, Intel announced a cost reduction and efficiency improvement plan during its third-quarter earnings report, aiming to cut costs by up to $10 billion by 2025. Subsequently, Intel undertook a downsizing of its organizational structure, reducing its research and development staff, and either selling off or discontinuing a significant number of projects.

Intel recently confirmed to CRN that it is restructuring its organizational framework, focusing primarily on the sales and marketing departments to align with corporate strategy and facilitate client success. During this process, Intel pledges to provide necessary support to all affected employees, expressing confidence in the company’s prospects.

Intel did not disclose the number of employees impacted by these changes, but reports suggest that 50 staff members were laid off in the past month. Over the past year, Intel has executed multiple rounds of layoffs, including reductions in its research and development personnel in California. According to recent reports from Intel, its foundry division reported a $7 billion loss last year, necessitating an accelerated pace of restructuring.

Intel announced a new operational model that establishes a foundry relationship between Intel Foundry Services (the manufacturing arm) and Intel Products (comprising the company’s product business units). The former is tasked with providing full-stack optimization, from the network of factories to software, encompassing foundry technology development, manufacturing, supply chain, and the original foundry services. This model will account for revenue from external foundry clients and Intel products, along with technology development and product manufacturing costs previously allocated to Intel products.

Despite these measures, skepticism about Intel’s direction persists, with some analysts questioning the company’s ambitious targets and expressing doubts about its optimistic market outlook.