Tuesday, August 20th 2024
Intel Targets 35% Cost Reduction in Sales and Marketing Group, Bracing for Tough Times Ahead
Intel's Sales and Marketing Group (SMG) has announced a 35% reduction in costs as the company looks to streamline operations and adapt to challenging market conditions. The cuts, revealed during an all-hands meeting on August 5th, will impact both jobs and marketing expenses within the SMG. Intel has directed the group to "simplify programs end-to-end" by the end of the year, a directive that comes on the heels of the company's announcement that it would lay off 15% of its global workforce to save $10 billion in operating expenses. "We are becoming a simpler, leaner, and more agile company that's easier for partners and customers to work with while ensuring we focus our investments on areas where we see the greatest opportunities for innovation and growth," Intel said in a statement to CRN. The company emphasized that this restructuring is about "building a stronger Intel for the future," with partners integral to its plans.
The job cuts within the SMG are expected to target overlapping responsibilities, such as account managers and industry-focused teams, which can confuse customers navigating Intel's complex organization. Additionally, the company plans to significantly reduce its marketing budget and simplify programs, aiming to save at least $100 million in the latter half of 2024 and an additional $300 million in the first half of 2025. The impact will also be felt in Intel's market development fund (MDF), a crucial tool for supporting OEMs and other partners through events, training, and more. An ex-Intel executive warned that the MDF had become vital as the company's product leadership waned, allowing it to maintain valuable relationships with partners. As Intel navigates these changes, its partners are bracing for the impact, with one CEO describing the situation as everyone "hunkering down and just waiting to hear something." Another partner executive expressed concerns about Intel's ability to maintain the level of service and support its customers have come to expect.
Sources:
CRN, via Tom's Hardware
The job cuts within the SMG are expected to target overlapping responsibilities, such as account managers and industry-focused teams, which can confuse customers navigating Intel's complex organization. Additionally, the company plans to significantly reduce its marketing budget and simplify programs, aiming to save at least $100 million in the latter half of 2024 and an additional $300 million in the first half of 2025. The impact will also be felt in Intel's market development fund (MDF), a crucial tool for supporting OEMs and other partners through events, training, and more. An ex-Intel executive warned that the MDF had become vital as the company's product leadership waned, allowing it to maintain valuable relationships with partners. As Intel navigates these changes, its partners are bracing for the impact, with one CEO describing the situation as everyone "hunkering down and just waiting to hear something." Another partner executive expressed concerns about Intel's ability to maintain the level of service and support its customers have come to expect.
45 Comments on Intel Targets 35% Cost Reduction in Sales and Marketing Group, Bracing for Tough Times Ahead
capitalism/socalism work, until ppl start to fill their pockets on the back of others.
i dont care if corp make money, but at least pay your part (taxes/wages/benefits etc), and counties like denmark (high taxes) show US companies like McD & co still make money when paying 20$/h plus benefits to flip burgers, while telling the US population they cant pay more than 8$/h..
Money that goes in one door and right out the other is a failing company.
Really, it's probably all just overshoot. I can't see them being in the red after a full year. More profits = more bonuses for those at the top.
Seriously Intel need to get back to it's roots. Also their naming conventions are Horrible Core 9 Ultra 285K Like what's that suppose to mean. How about Intel Cougar 9285K or something cool.
They need to drop this Core crap move too some cool name or something get better marketings or make some pure Desktop CPU's otherwise I see not a bright future for Intel.
I think this is a positive change for them.
www.theregister.com/2024/02/22/gelsinger_intel_split/
after +40y working for a lot of different businesses in all kind of areas, i know new naming for anything means an arm chair director had to justify his/her position.
exceptions prove the rule..
It’s like if parents said moving siblings to separate bedrooms makes two separate families. It doesn’t.
Believe me when Intel does actually split off its fabs it will be BIG news.
www.digitimes.com/news/a20240816PD206/intel-foundry-intel-spin-off-wafer-amd.html