Intel to Cut Jobs in Cost-Savings Drive as PC Slump Weighs on Earnings

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Intel posted a sharp drop in quarterly earnings and embarked on an aggressive cost-cutting push as it tries to navigate a plunge in PC demand

“We are planning for the economic uncertainty to persist into 2023,” Mr. Gelsinger said on an earnings call. “It’s just hard to see any points of good news on the horizon.”

Intel has been one of the worst-hit in the chip industry because of its heavy exposure to the PC market. The companyon softening computer demand. PC shipments are estimated to have seen a 15% contraction in the third quarter, according to International Data Corp. Third quarter sales in the segment fell 17%.

The company is also being challenged in the datacenter market. Intel chips predominate in server farms that process data for companies and governments, but it is facing growing competition there from rival Advanced Micro Devices Inc. Intel’s datacenter division reported a revenue fall of 27% to $4.2 billion for the third quarter.

“While Intel presses ahead with their long-term strategy, it is now abundantly clear that the path to get there was built on a shaky foundation which is now collapsing as PCs appear likely to revert to pre-COVID levels in the near future,” Bernstein Research analysts said in a note.

 

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Good thing we decided to give chip manufacturers $52 billion in the Chip Act. More taxpayer money down the drain.

When intel 4th gen runs windows 10 just fine and still play games? You have an oversaturated market. CPU designs haven't drastically improved. We aren't making die shrinks from 45nm to 32nm. We are at the physical limit of silicon based chips, nearing 12nm-5nm nodes.

Your reporter, Nick Timiraos is engaging in paying sources at NY Fed to publish erroneous articles on finance. He has lobbied for a job at the fed in exchange for publishing flattering articles.

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