Intel Comments on Reports of New Layoffs, Budget Cuts in Client CPU and Data Center Groups
Intel has responded to rumors that the company is embarking on a new wave of layoffs as a result of a new 10% budget cut to the Client Computing Group (CCG), the division responsible for manufacturing consumer CPUs, and its data. answered our question. Center Group (DCG). The report comes out as Intel continues to tighten its belts across the company while tackling the worst CPU market in his 30 years.
We heard rumors last week that a 10% budget cut was imminent, but we were unable to confirm that information. but, Dylan Patel of a consulting company semi-analytical Intel has tweeted that it plans to cut its budget by 10%, resulting in “up to” 20% job cuts in affected groups.We followed up with Intel and the company issued the following statement tom’s hardware:
“Intel is working to accelerate its strategy while navigating a challenging macroeconomic environment. is focused on identifying cost savings and efficiency gains through its initiatives.
“We will continue to invest in core areas of our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. and is committed to treating affected employees with dignity and respect.” Tom’s Hardware Intel spokesperson.
Intel’s statement confirms that it is cutting jobs in certain areas, but does not say how many employees will be affected or in which areas of the company. Nor does it define the size of the budget cuts. The company said it will continue to invest in its chip manufacturing business. This is a common refrain in many statements as we have exited some businesses but remain focused on our IDM 2.0 goals.
Like most companies of its size, Intel’s budget is spent on both internal and external teams. Some functions, and even chip manufacturing, are often outsourced to outside companies. As with many broader budget cuts, some of the cut spending may come through reduced use of these outside companies. As such, the scale of headcount reductions is not yet known and may not result in a 20% reduction in headcount in the affected business units.
Massive headcount reductions will trigger reporting requirements such as Warning, in certain regions. Intel’s latest WARN notice was dated May 3, 2023. The company announced plans to lay off another 60 employees. at the Folsom campus by the end of this month. This brings the total number of layoffs at Folsom to 516 over the past five months. The notice also stated that “additional departures are expected after his 30-day period beginning May 31, 2023.”
No other Intel WARN notices have been observed so far. Intel’s job cuts have cut costs across the company, including through the use of methods such as layoffs seen last October, cut salaries and bonuses in January, cut dividends, and furloughed some employees. This is because the reduction continues.
Intel has also exited several businesses, including its server building efforts, network switches, 5G modems, Optane memory, bitcoin mining chips, drone business and SSD storage units.
The PC market may recover next quarter. Several chip makers are now predicting a trough in the first quarter and a possible recovery in the second quarter of this year. In any case, Intel faces stiff competition from many companies across its broad portfolio and expects to cut spending by up to $10 billion by the end of 2025 as it executes its turnaround plan.