Intel wraps up a tough financial quarter: layoffs in sight

Has been Bad financial quarter also for Intel illustrating a fairly common trend for big tech companies right now. The chipmaker reported a net profit of $1 billion, down 85% from the same period last year (but still better than the previous quarter when it was in the red by around $500 million), versus a turnover of 15.3 billion dollars (3.9 billion less than in the same period last year). For this reason, the company has announced a reduction and cost reduction plan, which also includes layoffs .

Intel tends to except between 8 and 10 billion dollars per year for 2015 ; He didn’t say how many people are losing their jobs, but according to Bloomberg, there are thousands. There will also be reductions in working hours in the factories for some workers; The most affected divisions should be the operating and marketing divisions. At the same time, the company will renew its plans to increase its production capacity at home.

As we have repeatedly seen in recent days, the market is offering the big tech giants two years of higher growth thanks to the CVID-19 pandemic: we are in a situation of excess demand. switch to oversupply produce more than necessary that is to say, and therefore the prices go down, just like the producers of the fruits.

However, speaking to Reuters, CEO Pat Gelsinger confirmed that total headcount spending is a minor aspect of Intel’s overall budget, so it is focused where there are the most savings, namely factories and foundations. In general, however, investors were pleased as forecasts were worse, and Intel shares hover around 6% in the hours immediately following. However, Intel has lowered its estimates for the full year: it now expects to close with revenue of between $63 billion and $64 billion, between $2 billion and $4 billion less than previously assumed.

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