As part of its plan to cut billions of dollars in spending, Intel will be laying off workers. There are reports that Intel is going to cut thousands of jobs.
As part of its Q3 earnings, the company announced plans to cut around $3 billion in costs over the course of next year, and CEO Pat Gelsinger said that part of that would come from "people costs." He said that the company was cutting work hours for some employees. The company wants to cut costs by $10 billion a year by the end of the century.
A problem also affecting competitors is that of overproduction in certain segments, which is a problem also affecting Intel. The chip industry is going to be surplus by early next year. "This will negatively impact revenues across the chip industry, and typically, these situations call for re-evaluation of cost and margins."
The company did not reply to the request for details on the number of workers that will be laid off and what departments will be hit. The sales and marketing teams at Intel could be in for a rough ride.
Gelsinger said in an interview that Intel's people costs were a small part of the company's overall spending. The company broke ground on a facility in Ohio earlier this year and has committed at least 20 billion dollars to the project.
The company lost half a billion dollars in the second quarter but made a billion dollars in the third quarter. Part of Intel's best financial year ever was in Q3 2021.
Umar Shakir reports additional information.
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