As a sharp decline in demand for personal computers dragged down the company’s profits, chip giant Intel has begun to cut costs aggressively. Intel CEO Pat Gelsinger said in an interview on Thursday that the company will begin targeted layoffs and make other adjustments, including reducing factory hours, in response to the economic downturn.
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He did not specify how many of Intel’s more than 120,000 employees would be affected. “We’re aggressively addressing costs and improving efficiencies across the business,” he said.
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 in three years. Intel booked a $664 million restructuring charge in the third quarter to reflect initial cost reductions. Shares of Intel were down 3.45% as of Thursday’s close. Shares of Intel jumped 5.6 percent after the announcement of cost-cutting plans.
