Intel Announces New Wave of Layoffs, Implementing On Its Restructuring Policy

06.04.2024 - 17:47 / wccftech.com / Pat Gelsinger / Muhammad Zuhair

Intel has started to implement its restructuring plans, with reported layoffs in the Sales and Marketing division, according to details acquired by CRN.

Intel's Recent Financial Performance Has Put The Company's Future In Doubt; Analysts Expect No Good Until 2030

Intel's financial performance over the past few quarters hasn't been satisfactory, especially compared to competitors like NVIDIA and AMD, which saw a gigantic rise in market valuation. A spokesperson confirmed to CRN that the firm has indeed implemented a new wave of layoffs affecting the company's marketing division, but further details or the extent of terminations haven't been disclosed yet.

Related Story Intel Core i9-12900K, i7-12700K, i5-12600K Available In Amazing Combo Deals: 32 GB Kit & Z790 Motherboard Starting At $250

Intel's restructuring plans were evident as back in 2022, Intel's CEO Pat Gelsinger himself revealed that the firm is looking for widespread cost-cutting measures, potentially reducing spending by $10 billion due to weakened consumer demand along with how the company was expanding itself.

In light of this, Intel separated its foundry division previously as well and made it a different entity, but it was more of a strategic move since Team Blue wanted to make a presence in the semiconductor business. Since Intel has enormous expectations with IFS, the division will likely be a revenue magnet for the firm, as they plan on making the foundry the second largest in the upcoming years.

Intel has revealed that the firm plans to generate 25 to 30 percent in operating margins by 2030, which will require an aggressive economic strategy, whether it involves downsizing or halting developments on a few projects.

However, Bernstein analysts believe Intel's goals are speculative and have questioned the firm's "bullish" market stance, claiming that there is "no real reason to be here until 2030" for Team Blue. The AI landscape hasn't favored Intel up till now, but the company looks to be in a competitive position in the markets, given that it manages to execute its plans.