Intel Cuts Budget for Client and Data Center Groups, Layoffs Imminent

[AleksandarK]

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:

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.

View at TechPowerUp Main Site | Source

 

[sethmatrix7]

Somebody forgot to write a check to the server OEMs

 

[mechtech]

Layoffs imminent…..

should be execs pay cuts, bonuses and stock options cuts imminent…..

 

[ExcuseMeWtf]

"Restructuring"

 

[LabRat 891]

Call me crazy, but I think Intel's using the economic crisis to obscure otherwise planned moves.

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.

 

[Denver]

Call me crazy, but I think Intel's using the economic crisis to obscure otherwise planned moves.

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.

I find it amusing to know that someone believes that.
Intel is trapped in a loop of wrong moves, I would be afraid if I were an investor.

 

[TheinsanegamerN]

I find it amusing to know that someone believes that.
Intel is trapped in a loop of wrong moves, I would be afraid if I were an investor.

People said the same thing about AMD, look at them now.

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.

 

[phanbuey]

People said the same thing about AMD, look at them now.

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.

This -- I invested in AMD at $2 -- because I knew Lisa Su and Keller were there and things were likely to turn around... I didn't expect the spectacular clinic they put on with Xilinx and TSMC, and I also didn't expect intel to just fall apart, but still you could tell that it was turning around.

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.

 

[londiste]

That quote from Intel spokesperson sounds exactly like some satire aimed at MBAs and their bullshit bingo

 

[prtskg]

Somebody forgot to write a check to the server OEMs

DCAI unit had $3.7B revenue yet they were in red. So I think they are still writing the checks.