Intel's brutal start to 2023 means more troubles are ahead

pcgamer.com:

Big tech firms haven't enjoyed a good start to 2023. The wider economy, the war in Ukraine, lingering pandemic related issues and inflation has meant many of the world's biggest companies including Meta(opens in new tab) and Alphabet(opens in new tab) among others have taken huge hits to their bottom lines. Sadly, for those involved, that means staff cuts. Intel is the latest company to announce a new wave of layoffs.

Just a couple of weeks back, Intel released a grim set of financial results(opens in new tab). It saw a loss of $2.8 billion, the largest in the company's history. Add to that a massive 36% drop in overall revenue and it's no surprise that Intel is seeking to tighten the purse strings.

Rumors began to surface last week, with Dylan Patel of Semi Analysis tweeting(opens in new tab) about major budget cuts and layoffs. Though unconfirmed at the time, Intel has since released a statement to Tom's Hardware(opens in new tab), which follows:

«Intel is working to accelerate its strategy while navigating a challenging macro-economic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.

»We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect."

Very unfortunate news, but massive layoffs at Intel coming!Intel's Datacenter and Client computing groups are receiving ~10% budget cutsIt's up to divisions to figure out how to cutGiven fixed costs, means as much as 20%