Intel CEO Pat Gelsinger said Thursday that the company will soon A round of “targeted cuts”. As reported by oregon livethe CEO took part in a video conference with company employees and explained that the job cuts were necessary because of the high cost and low margins of the myriad of products Intel develops, manufactures and distributes.
The goal of the cuts is to unlock ways to reduce Intel’s operating costs and restore profitability. This comes just months after Intel and other semiconductor companies received his $52 billion government grant in the United States alone.
Information on the internet suggests that Intel may be looking to cut 20% of its workforce in certain departments, including sales and marketing. The need to streamline operating costs likely stems from the complete collapse of Intel’s stock in just one year, with the company’s share price down 50% of his, especially against the backdrop of intense macroeconomic pressures. increase. The decline came even as Intel sought more and more funding from the government – which Pat Gelsinger himself said could have adversely affected the company’s execution.
The impact on execution and lower global demand for Intel products was evident in the company’s second-quarter earnings report, which said Intel expects to post $454 million in Q2 2021 on net income of $5 billion. posted a loss of $10,000. And given the current state of the global semiconductor market, Intel’s third quarter 2022 earnings could drop another 15%.
However, Intel isn’t the only company tackling these issues. AMD recently revised its revenue forecast with an expected $1.1 billion decline in the third quarter, Nvidia revised its estimates with its own $1.4 billion decline, and Apple cut component orders for its latest iPhone 14 offering. reportedly did as much as 90%But while Intel has admitted to going down the road of layoffs, AMD and Nvidia, two companies (excluded from the US government’s $52 billion subsidy and equally affected by the market turmoil), have taken the plunge. Nothing has been announced about the impact.