Intel To Cut Jobs in Cost-Savings Drive as PC Slump Weighs on Earnings

Intel has embarked on an aggressive cost-cutting push and is considering divestitures as the chip maker tries to navigate a sharp plunge in demand for PCs that has weighed on the company's earnings. From a report: Intel posted a 20% drop in third-quarter sales, issued a forecast for even weaker revenue in the current quarter and lowered its full-year outlook. The company is beginning targeted job cuts and making other adjustments including reducing factory hours to cope with the economic downturn, Chief Executive Pat Gelsinger said in an interview Thursday. He wouldn't specify how many of Intel's more than 120,000 employees would be affected.

"We are aggressively addressing costs and driving efficiencies across the business," he said. He added that the company was looking at possible divestitures, among other moves. Intel said it was working to deliver $3 billion in cost reductions in 2023, growing to $8 billion to $10 billion in annualized cost reductions and efficiency gains by the end of 2025. The company took a $664 million restructuring charge in the third quarter to reflect initial cost reductions.

Tighten those belts!

[Daemonik]

So, they're suspending pay for everyone on the Board, lowering benefits packages and reducing their make-work managerial staff who's biggest concern is if you're spending enough time in the office so they can micro-manage you and justify their jobs? No? Oh, bonuses and cake for all of those people, layoffs for everyone who actually does the work of keeping the business running.. so just another day in corporate land then.

Re:

[gtall]

Yes, and now Twitter is under a deluge of anti-semitic hate twits owing to his vow to remove moderation. Republicans: making the world safe for racists and Putin's best friends.

Re:

[93 Escort Wagon]

Oh, bonuses and cake for all of those people, layoffs for everyone who actually does the work of keeping the business running..

They've thought very carefully about this - they're not laying off the secretary whose job it is to order the cake.

These Companies Never Learn

[rudy_wayne]

Hire, Hire, Hire, Hire
Oh Shit!! We have too many people!!
Fire, Fire, Fire, Fire

Spend, Spend, Spend, Spend
Oh Shit!! Profits are down!!
Cut, Cut, Cut, Cut

Incompetent morons, all of them.

Re:

[rsilvergun]

The problem is going to be with how steep the layoffs claim to be they're laying off engineers too. Good ones. Meaning that unless AMD joins The fray and helps Intel lower wages with their own layoffs then Intel's going to be completely screwed in about 3 years when AMD hires up all those engineers and has cutting edge products and Intel is stuck with 3-year-old tech glued together and shoved out the door.

It's like opec. If everybody gets together and coordinates layoffs and follows through on them then

Re:

[Petersko]

So how would you suggest dealing with a cyclical market? Never change your staffing?

Re:

[gtall]

A Conspiracy!!! Have you told FOX about this? They'd love to hear from you.

Great opportunity for 'Made in the USA"

[Bearhouse]

So...no need to torture your brains about where to get experienced people and production resources to reduce dependence on China and soon to be invaded Taiwan (now that Poo-bear is officially President for life, and the West has demonstrated its impotence in facing-down Putin over Ukraine).

Get these people working on what we'll need and send the money to US people in facilities based in the USA.

Or am I missing something? Oh yeah, it does not fit with short-term Wall Street financial returns and C Suite bonu

Then they don't need taxpayer money

[quonset]

If Intel is cutting staff to save money, that money can be used to construct their plant in the U.S. rather than the taxpayers footing the bill and getting nothing in return.

There ought to be a provision in any welfare queen bill that the U.S. taxpayer has a say in how a company is run if their tax dollars are propping up that company.

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[rsilvergun]

No, we ought to not do welfare Queen bills at all. Instead if a government wants to give money to a specific company they should do what private individuals do and buy stock. Go to Intel and have them do a stock split and then buy up the stock. Good quality voting shares too. My tax dollars are some of the most valuable dollars on the planet. It's guaranteed money and lots of it. If I'm going to give it to somebody I want something tangible in return for the public at Large. Because I'm the public at Large.