Intel Looking to Lay Off Meaningful Numbers of Staff, Can Some Products, After Profit Slump

Intel’s third quarter financials that the company released yesterday, weren’t exactly what you’d call stellar. This has put Intel CEO Pat Gelsinger in a bind, as he’s been forced to announce cost cuts of US$3 billion annually, starting 2023, but that it’ll grow to somewhere between US$8 to 10 billion by 2025. Although Gelsinger didn’t reveal the specifics of what these cost cuts will entail, he did mention quite a few potentials, according to The Register. Gelisinger stated that Intel “need to balance increased investment in areas like leadership in [technology development], product, and capacity [at new plants under construction] in Ohio and Germany, with the efficiency measures elsewhere as we drive to have best in class structures.”

Intel’s CFO David Zinsner, told Barron’s that the company will be cutting a “meaningful number” of employees from Intel’s payroll. Zisner went on to say that Intel will also perform “portfolio cuts, right-sizing our support organizations, more stringent cost controls in all aspects of our spending, and improved sales and marketing efficiency”. It sounds like almost no-one is safe at Intel, especially as portofolio cuts mean that some product lines will either be sold off, or simply just canned in favour of more profitable products. Intel is also betting hard on its IDM 2.0 strategy, where the company is decoupling its hardware and software design teams from its foundry business. Time will tell if this helps restart Intel as a business, but Gelsinger seems to believe that the changes he’s implementing at Intel will help turn things around.