Wednesday, Feb 01, 2023, 17:08 Economy

Intel – Massive Decreases In Revenue & New Savings Measures

It's no secret to those in the tech-sphere that Intel is encountering difficulties. In fact, the company has been doing so since the beginning of the COVID-19 pandemic. Currently, Apple's former partner is either parting ways with many of its employees or offering them months worth of unpaid vacation time. Due to the current worldwide inflation crisis, market analysts have already begun to scrutinize the company's last quarterly report with concern. The numbers are sobering: Last quarter was the worst in the company's history, and the prognosis is less than promising. Now, the former chip giant hopes to combat the fallout via cost reduction and restructuring.

Clear Regressions In Important Business Divisions
In 2022's Christmas quarter, Intel's sales volume fell by 32% – down to US$14 billion, resulting in a more than 80% drop in revenue. In particular, it's the weak demand for PCs is causing issues for the chip manufacturer. Intel's PC division witnessed a 36% decrease in profits, obtaining only US$6.6 billion in proceeds for the company. Even Intel's data center came ended up in the red: Revenue fell by about 1/3rd to US$4.3 billion. However, the struggling chip manufacturer's CEO – Pat Gelsinger, points to current market conditions as the reason for the current numbers – yet, he still doesn't foresee any recovery next quarter.



Intel Emphasizes Cost Reduction
According to Gelsinger, the company is set to undertake an analysis of its entire portfolio, which will result in the merging of several divisions in order to cut costs: For example, the AFX division (for graphics processors) will be combined with the Client Computing Group (CCG), as well as the Data Center and AI division (DCAI). Additionally, Intel will cease further investment in its network division (NEX), alongside discontinuing further development of its pathfinder program.

More articles you might enjoy to read: