Intel plans to cut staff in the fourth quarter to cut costs and fund fabs

Intel has confirmed it will soon be laying off employees as part of its plan to cut billions of dollars in spending. The announcement comes after reports that Intel plans to cut thousands of jobs.

As part of its Q3 results, the company announced plans to cut approximately $3 billion in costs over the next year, according to CEO Pat Gelsinger Reuters that part of it would come from “personnel costs”. He also confirmed the job cuts Bloomberg adding that the company reduced factory hours for some employees. By the end of 2025, the company hopes to have reduced its costs by $8 billion to $10 billion a year.

Intel is facing an industry-wide shift in semiconductor availability as pandemic shortages give way to overproduction in certain segments — a problem that’s also affecting rivals AMD and Nvidia. “The chip industry is going from shortage to surplus in a range of devices (by early 2023). This will (at least in most cases) negatively impact sales across the chip industry, and typically these situations require a reassessment of costs and margins,” Gartner analyst Gaurav Gupta said in an email The edge.

In his Reuters In an interview, Gelsinger said that Intel’s labor costs accounted for a relatively small part of total spending, so the company is more focused on its factories and factories to save money. The company is currently in the process of building a facility in Ohio, which it broke ground on earlier this year, and has committed at least $20 billion to the project.

Additional reporting by Umar Shakir

https://www.theverge.com/2022/10/27/23427403/intel-q3-2022-layoffs-billions-cost-reductions Intel plans to cut staff in the fourth quarter to cut costs and fund fabs

John Verrall

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