Intel is still working on its plan to reduce operating costs. After logical announcements that sent the stock market into a tailspin, the response from American groups is always the same: cut personnel. This week, Intel launched a new round of layoffs affecting an unknown number of employees in its sales and marketing group. This is the latest round of layoffs since CEO Pat Gelsinger announced in October 2022 that the semiconductor giant planned to cut spending by up to $10 billion by 2025 to cope with a “sharp and pronounced slowdown in demand”.
A spokesman for the chipmaker confirmed on Thursday that it had cut jobs as part of a reorganization, but gave no further details. The Sales & Marketing group is headed by Christoph Schell, and it seems clear that these decisions will affect all the company’s geographical locations.
In order to continue to execute the company’s strategy and drive results for its customers, Intel’s [Sales and Marketing Group] has announced changes to its organizational structure …We are confident in Intel’s future and are committed to supporting all employees throughout this process, including treating affected employees with dignity and respect.
Rather than rehashing the “Intel is doing badly” machine, however, Intel’s transformation and massive investments should be viewed coolly. As the jobs pendulum is particularly violent in the USA, and is often used to calm stock market jolts, it is too early to draw any precise conclusions, in our opinion. The chip manufacturing business seems to be the company’s essential focus, with the desire to win over major customers. However, the credibility of this business also depends on regaining technological leadership. In this respect, the company’s best demonstrators remain its own products…
