May 10, 2023
Intel has stated its desire to reduce the number of employees in key business areas and jobs inside the corporation in order to streamline operations and save money.
The decision to decrease employees was rather foreseeable, considering Intel’s stated goal of cutting costs by $3 billion this year and reaching annual savings of $10 billion by 2026. It hinted at substantial layoffs shortly after the idea was presented.
Intel declined to specify the number of workers affected, but says the move is part of its ongoing efforts to accelerate its strategic aspirations while navigating a tough macroeconomic environment in which it just incurred its worst quarterly loss in history. The first-quarter net loss was $2.8 billion, indicating a 36% decrease in revenue from the prior year. Despite the significant deficit, Intel paid out $1.5 billion in dividends.
Alongside the current slowdown in chip demand, another factor weighing on Intel’s earnings is the increased competition from AMD and other market players. The company’s plan to address that competition centers on an internal effort to roll out five new chip manufacturing processes, or nodes, in four years.
The sources for this piece include an article in USATODAY.
