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Intel Revenue Falls 59 per cent, Announces Up to USD 10 Billion in Cutbacks
Pat Gelsinger, the CEO of Intel (NASDAQ: INTC), unveiled a right-sizing strategy that included cost reductions of up to USD 10 billion by 2025 and USD 3 billion by 2023, according to Gelsinger.
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CIO Applications | Wednesday, November 02, 2022

Pat Gelsinger, the CEO of Intel, unveiled a right-sizing strategy to slash expenses by up to USD 10 billion by 2025 and USD 3 billion by 2023.
FREMONT, CA: Pat Gelsinger, the CEO of Intel (NASDAQ: INTC), unveiled a right-sizing strategy that included cost reductions of up to USD 10 billion by 2025 and USD 3 billion by 2023, according to Gelsinger. In a conference call with Wall Street investors, Gelsinger said, “Inclusive in efforts will be initiatives to optimise our headcount. These are challenging choices affecting our devoted Intel family. Intel employs 121,100 people.”
The chip giant's abrupt and pronounced slowdown in demand has broadened beyond their early forecasts and is now having an industry-wide impact across the electronics supply chain, according to Gelsinger in a conference call with analysts.
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The reduction coincided with Intel reporting net income of USD 2.4 billion, a 59 per cent down from USD 5.9 billion in the same quarter a year ago, for its third fiscal quarter that concluded on October 1. In comparison to USD 18.1 billion a year earlier, Intel reported a 15 per cent decline in quarterly sales to USD 15.3 billion. Gelsinger delivered a video speech to staff, informing them that he would go into greater detail about the layoffs on November 1st. In a video speech to the staff, Gelsinger said, “These are always difficult decisions, but their costs are too high and margins are too low.”
Intel's Client Computing Group sales decreased 17 per cent to USD 8.1 billion from USD 9.8 billion in the same quarter last year due to weaker PC demand in consumer and educational markets and OEM inventory adjustments. In contrast, operational income for Intel's Client Computing Group fell 54 per cent to USD 1.7 billion from USD 3.6 billion in the corresponding quarter of 2021.
Sales for Intel's Data Centre Group declined 27 per cent in the quarter to USD 4.2 billion from USD 5.8 billion in the same quarter last year, doing even worse than the Client Computing Group. In contrast, the Data Centre Group's operating income decreased to zero from USD 2.3 billion in the same quarter last year.
The Network and Edge Group reported a 14 per cent growth in revenues to USD 2.3 billion, driven by strength in 5G, edge, and Ethernet solutions. This was one positive development for the corporation. Despite the double-digit revenue growth, the unit's operating income fell by 85 per cent to USD 75 million from USD 511 million at the same time last year. Even in the face of a potential global recession, the company is still committed to its long-term strategy.
To enable manufacturing groups and business units to be more flexible, make better judgments, and develop a leadership cost structure, he stated, the company is focusing on implementing an internal foundry model. They are still dedicated to the long-term financial plan and strategy presented at investor meetings.
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