The company’s fourth quarter revenue dropped by 32pc, while it pushes forward with a strategy of cost reductions and job cuts for 2023.
Intel suffered a revenue loss in 2022 and has given a bleak outlook for the start of this year, as the company reacts to economic uncertainty and a slump in PC sales.
The company’s revenue for the fourth quarter of 2022 was $14bn, a drop of 32pc year-over-year and below analyst expectations.
Intel’s revenue for the full year dropped by 20pc to $63.1bn, while the earnings-per-share for the full year fell by 60pc to $1.94.
CEO Pat Gelsinger said the company made “good progress” on its strategic transformation last quarter, despite “the economic and market headwinds”.
Last October, Intel said it was planning to “aggressively” address costs for this year, with a goal of reaching $3bn in cost reductions in 2023. This includes job cuts that will affect its global 120,000 employees, including 5,000 in Ireland.
In the fourth quarter results announcement, CFO David Zinsner said steps were taken last quarter to “right-size the organisation and rationalise our investments”.
“These actions underpin our cost-reduction targets of $3bn in 2023, and set the stage to achieve $8bn to $10bn by the end of 2025,” Zinsner said.
In an earnings call with investors, Gelsinger said Intel had “stumbled” and “lost momentum”, but believes the company will stabilise this year.
Last month, it was reported that Intel was offering voluntary unpaid leave to a significant portion of its Irish staff in an effort to reduce costs.
Earlier this month, a report by the Business Post claimed the company was in a second round of job cuts, with 30 compulsory redundancies among its Irish workforce.
An Intel spokesperson told SiliconRepublic.com that the company is accelerating its cost-cutting strategy while “navigating a challenging market and macro-economic environment”.
“As we continue to invest in our Leixlip fab expansion and prepare for anticipated future demand, we are also focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific non-manufacturing workforce reductions within Intel Ireland,” the spokesperson said.
“We have provided the necessary notifications and support regarding our actions in Ireland and are committed to treating impacted employees with dignity and respect.”
Many tech companies have been looking at reducing their global workforces to cut costs in the current economy.
In January alone, tech companies such as Microsoft, Alphabet, SAP, IBM, Spotify, Amazon and Salesforce have confirmed plans to reduce their staff numbers.
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