Intel plans to cut headcount to cut costs
🟦 Intel’s cost-cutting restructuring?
Intel has announced that it will work to reduce costs by up to 10 billion dollars (about 1.5 trillion yen) per year by 2025. We plan to reduce costs by 3 billion dollars in 2023 in stages and expand to 8 billion ~ 10 billion dollars per year by 2025. Some of them will reduce costs by reducing the number of employees and shortening the hours of employees working at the plant. It is rumored that it could cut 20% of its 114,000 employees.
🟦 Intel’s revenue deteriorates significantly
US>Slowing PC and server sales have hurt Intel’s bottom line. Revenue deteriorated significantly in the second quarter of 2022. We also lowered our full-year 2022 revenue forecast to $64 billion. This is a decrease of just under 10% from $79 billion in 2021.
- Q2 2022 Earnings
- Net sales down 20% to $15.3 billion
- Net income down 85% to $1 billion
Intel is investing heavily due to its full-scale entry into the foundry business. We will thoroughly reduce costs, curb hiring, and reduce capital investments.
🟦Summary
Intel plans to cut headcount to significantly reduce earnings and reduce costs to secure investment in foundry business
It seems that they are already working on restructuring.
