Intel CEO: Company will start targeted layoffs

According to Reuters, Intel has cut its full-year profit and revenue forecasts and said it will cut jobs in a "very straightforward" way.

Affected by factors such as the new crown epidemic, brinkmanship and inflation, Intel expects revenue in the fourth quarter of 2022 to be $14 billion to $15 billion, lower than market expectations of $16.3 billion. Annual revenue for 2022 is expected to be about $63 billion to $64 billion (down from an earlier estimate of $65 billion to $68 billion), compared with an initial forecast of about $76 billion. Analysts on average expected annual revenue of $65.26 billion, according to Refinitiv data.

In response, Intel CEO Pat Kissinger said that the lowered fourth-quarter forecast reflects expectations that economic uncertainty will continue into next year, and that Intel is taking time to increase data center sales because sales fell in the third quarter. 27%.

In addition, Intel also lowered its capital expenditure forecast for this fiscal year to $25 billion from the previous $27 billion.

In addition, Pat Kissinger said in an interview that the company will begin targeted layoffs and make other adjustments, including reducing factory hours, in response to the economic downturn. He said the staffing changes would be "very straightforward," but he did not specify how many of Intel's more than 120,000 employees would be affected.

Intel said the company is working to achieve $3 billion in cost reductions in 2023, increasing annualized cost reductions and efficiency gains to $8 billion to $10 billion by the end of 2025. In this way, Intel will cut costs by up to $13 billion (about 94 billion yuan) within three years.