Intel Pledges More Cost Cuts as Sales Forecast Misses Estimates
- CEO says no economic good news on the horizon to help outlook
- Chipmaker promises to take out as much as $10 billion in costs
Intel headquarters in Santa Clara, California.
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Intel Corp. shares climbed in late trading after the chipmaker pledged to slash costs, an effort to weather a persistent slump in computer demand that is dragging down sales and profit and obstructing its turnaround efforts.
The company said actions including headcount reductions and slower spending on new plants will result in savings of $3 billion next year, with annual cuts swelling to much as $10 billion by the end of 2025. Third-quarter profit and revenue tumbled, Intel said Thursday in a statement, and it again scaled back 2022 revenue and profit targets.