Intel is cutting more jobs as CEO Tan tries to fix manufacturing missteps
Arsheeya Bajwa, Stephen Nellis and Max A. Cherney
(Reuters) -tel sang the year with a fifth smaller workforce compared to last year, and the new CEO Lip this tan, “No more empty checks”, a more cost -disciplined, aerodynamic chip manufacturer presented a plan.
The majority of which have already been completed are part of Tan’s effort since the description of the US chipset, which has been endured in March. Intel disposed of businesses, dismissed employees and directed them again.
The company performed low performance due to years of management’s blunder. Intel, NVIDIA’s dominated AI chip industry, almost no basis, and for a long time its rival AMD Intel’s basic personal computer and server semiconductor markets are taking part in the semiconductor markets. A chip that rivals Taiwan’s TSMC is an ambitious and costly plan for the contract business.
However, Tan showed that he took responsibility for the company on Thursday and tried to return what he saw as the previous false steps.
“No empty checks anymore,” Tan wrote, a note to the employees. “Every investment should be economical logical. We will build what our customers need when they need it and we will dig their trust through a consistent execution.”
However, after predicting the company’s third quarter losses than Wall Street, it was predicted, stocks still fell by 4.5%. Tan also said that in a conference meeting, Analysts believe that the 18a production process in which his predecessor Pat Gelsinger made deep investment of his predecessor Pat Gelsinger can only provide a reasonable return if Intel is used for his own products. Reuters reported that at the beginning of this month, Tan discussed whether he would stop offering this technology to external customers.
In his statement to the finance chief David Zinsner Reuters, Intel tried to adopt an Intel “surgical an approach and remove the middle administration layers as part of business cuts. “We have removed about 50% of the company layers,” he said.
The company reduces its labor force by 15% from 96,400 at the end of June. According to the company, it plans to reduce more than 75,000 by the end of the year, with a 22% decrease until the end of 2024.
Tan will examine
“They may have been extremely out of 18a … But I think this is a painted picture of a new financial disciplined base. I think this is the right approach.” He said.
In the note of the employees, Tan said that Intel has changed its strategy for creating the production capacity and now that the demands for the chips are planning to build the factories. Previously, the company had built factories in the US and elsewhere in front of demand.
Intel is now trying to bring 18a technology to its high volume. In the note, Tan said in the note that the company plans to take a disciplined approach to investments in the new generation 14A production process, and Intel could be forced to get out of the chip production business if it does not find an important external customer for 14A in its three -month securities file.
Tan wrote that the company is now planning to slow down construction works in new factories in Ohio and to stop the planned factories in Poland and Germany, and to combine other packaging operations in Vietnam and Malaysia with chip packaging operations in Costa Rica.
“If you build it, I am not subscribing to the belief of future, Tan Tan said in a call with analysts. He added that Intel would personally examine and approve each of the big chip designs.
Perpendicular losses
Intel, according to LSEG data, the third quarter of the third quarter per share expects losses. For the September quarter, $ 12.6 billion to $ 13.6 billion awaits revenue, and a midpoint of $ 13.1 billion was higher than the an estimation of analysts an average of $ 12.65 billion.
While semiconductors are currently being exempted from the US President Donald TrumpSweeping global tariffs, Intel and other chip manufacturers are facing customers who are reluctant to spend in the middle of widespread macroeconomic uncertainty. Customers were sent to the first half of the year due to trade uncertainty.
Intel’s second quarter income for the ending period on June 28 was 12.9 billion dollars and lowered four quarters sales line. The result defeated $ 11.92 billion estimates.
Intel, business cuts in the second quarter of 1.9 billion dollars of reconstruction costs, he said.
The June quarter recorded 10 cents of damages per share compared to 1 Cent profit forecasts per share. The unreasonable loss was 67 cents per share in the second quarter, more upright than the estimates of the analyst’s 26 loss per share.
(Arsheeya Bajwa in Bengaluru and Max A. Cherney and Stephen Nellis in San Franciscoediting and Sayanani Ghosh and Matthew Lewis)
