Monday, May 8th 2023
Intel Cuts Budget for Client and Data Center Groups, Layoffs Imminent
Following the recent Q1 2023 financial report with declining revenue, Intel is restructuring its Client Computing Group (CCG) and Data Center Group (DCG). These two units were hit the hardest, with 38 and 39% downturns, respectively. According to Dylan Patel of SemiAnalysis, and a statement from Tom's Hardware, we have information that Intel will be conducting budget cuts to CCG and DCG, with some layoffs. As Dylan Patel notes, Intel will cut CCG and DCG budgets by 10%, resulting in as much as a 20% reduction of the workforce inside those two groups. Additionally, this was supported by Intel's spokesperson, who issued a statement for Tom's Hardware stating the following:
Sources:
Dylan Patel (Twitter), Tom's Hardware (Statement)
Intel SpokespersonIntel 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.
9 Comments on Intel Cuts Budget for Client and Data Center Groups, Layoffs Imminent
should be execs pay cuts, bonuses and stock options cuts imminent…..
I get the feeling that Intel is well aware of 'how' AI/MI is changing the IT and eService market space, and is reallocating resources to minimize losses and 're-align' with new technologies.
I don't like Intel, but I don't think this'd scare me if I had investments in them.
Intel is trapped in a loop of wrong moves, I would be afraid if I were an investor.
The industry is shrinking. All the articles claiming that the market will recover in 2023 or 2024 are pure copium. We are ina recession, and right now is a GREAT time to get rid of the chaff.
Pat is making the right moves, hard to stop a freight train of fails, but he's absolutely doing the right things. That stock was the best performer of Q1 2023 for a reason:
Market is agreeing with you -- that forward PE is very optimistic.