“In addition to reducing short-term costs, we have also identified structural cost savings and efficiency factors. Overall, our efforts should deliver $3 billion in annual savings in the near term and $8 billion to $10 billion by the end of 2025. ” Gelsinger said late Thursday.
“Our efforts will include steps to optimize our workforce. These are tough decisions that affect our loyal Intel family, but we need to balance higher investments,” the Intel CEO announced.
“We will begin with a focus on driving $3 billion in cost reductions by 2023, one-third in cost of sales and two-thirds in operating expenses,” the company said.
Earlier this month, reports surfaced that the chipmaker plans to cut jobs that could run into the thousands, especially for its sales and marketing teams, such as
Intel posted revenue of $15.3 billion in the third quarter, in flat succession. Operating loss was $378 million, $156 million worse than a year over year “due to lower demand and product readiness affecting inventory valuation.”
Operating income was $142 million, up $15 million from the third quarter of 2021, primarily due to higher revenues, the company said.
Gelsinger said the company is not happy with the results and “we remain focused on mastering what we can, and we are pleased that our PC stock stabilized in Q2 and is now showing a significant improvement in Q3”.
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