Intel is preparing for massive cost cuts and corporate restructuring

The company began separating microprocessor development and production about three years ago, when Gelsinger became head of Intel. From that point on, the company’s factories became more accessible to outside microprocessor developers. Starting in 2024, Intel’s manufacturing business will report separate financial statements. But now it will become a fully independent division within Intel’s structure, will be able to receive separate financing and be a contract manufacturer.

Gelsinger says that there is no question of separating and selling the manufacturing business, because “together is even better.” Intel’s management plans to reduce the number of company offices by two-thirds by the end of 2024. This, they say, will simplify the company’s structure and centralize small and inefficient teams. The company is going to reduce costs and review investments in production, as well as increase the efficiency of capital investments.

The measures taken are the result of a meeting of Intel’s board of directors held in early September, where the company’s strategy to overcome the crisis was discussed. By 2024, its shares fell by almost 60%, the company suffered losses and lost customers.

In August, the American chipmaker Intel decided to lay off 15% of its employees (at least 15,000 people) and suspend dividend payments from the fourth quarter of 2024.