US semiconductor giant Intel further lowered its 2022 forecasts to adjust to the economic environment and planned to increase cost-cutting measures. The group expects to achieve a turnover of 63 to 64 billion dollars this year. At the beginning of the year, he planned 74 billion, but already in July revised his ambitions downward, expecting 65-68 billion.
In the third quarter, its turnover decreased by 20% and amounted to 15.3 billion dollars, the demand decreased especially for data centers and artificial intelligence, as well as components for computers. Its net profit melted away, more than sixfold compared to the same period last year, amounting to $1 billion. On a per-share basis and excluding exceptional items, earnings still beat analysts’ expectations.
Annual savings of 8 to 10 billion by 2025
To overcome this air pocket, Intel has already initiated cost savings and charged $664 million in restructuring charges in the third quarter. The group plans to reduce overall costs by $3 billion by 2023 and aims to achieve annual savings of $8-10 billion by 2025 through cost-cutting and streamlining measures.
Press reports indicated possible job cuts. The group, which benefited from an explosion in demand for computers and electronic devices with remote working and distance learning during the Covid-19 pandemic, employed 131,500 people at the end of September, or 12% more than the same day last year. Shares of Intel, down about 50% since the start of the year on the New York Stock Exchange, rose 4% in electronic trading after the end of official trading.
Source: Le Figaro
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