CPU manufacturing giant Intel is reducing 35% of its costs in its sales and marketing department after suffering from overwhelming monetary losses in the second quarter, raising concerns about a possible downturn within the tech company that could eliminate thousands of job roles for the time being.
In the all-hands meeting, Intel’s Sales and Marketing Group (SMG) announced plans to reduce its expenses as the company advises its employees to “simplify programs end-to-end.” This announcement came just days after the company’s previous announcement, in which it signaled to lay off 15% of its workforce by firing almost 17,000 people as the company tried to restructure itself in the wake of the internal financial crunch.
According to the company, they are aiming to enhance their efficiency to build a win-win environment for every stakeholder. The tech firm also suggested that they are seeking to invest money in ventures in which they see the best growth and innovation opportunities so that the company can lay a foundation for a stronger future.
Although the SMG has yet to announce which job roles will be eliminated in the major restructuring drive, some insiders believe that the company may end up merging some positions, resulting in more responsibilities for the rest of the workforce. However, this approach also worries some insiders, who believe that it will only trouble customers who will be more confused about their point of contact within the company.
Some reports also maintain that the company can majorly focus on cutting costs in the marketing department by saving almost $400 million by the first half of 2025. The company’s Marketing Development Fund (MDF), which has helped it win global clients, is also likely to be impacted by the latest funding cuts.
Despite maintaining its global hegemony in chip manufacturing for most of the previous decade, Intel incurred heavy losses in recent times as the company reported $7 billion of loss from its chip manufacturing unit in 2023. The continuous success of Taiwan Semiconductor Manufacturing Company has further pushed Intel back as the company desperately tries to win back its lead in the global semiconductor manufacturing market.
During the second quarter of 2024, the company further reported a loss of $1.6 billion, which is roughly equal to 38 cents per share. The company’s share, which stood at $47.80 at the start of 2024, has now been slashed by more than half and is barely sustaining at $20.10 at the moment.
