After a golden age during the Covid-19 pandemic, characterized by a spectacular jump in demand in the electronic components market, times are tough for players in the sector. Proof of this is that Intel had a complicated last quarter in 2022, with a loss of 700 million dollars, much more than the 80 million expected by analysts. Over the same period a year ago, the Santa Clara firm had earned $4.6 billion in profits.
As for the company’s revenue, it stood at $14 billion, down 32% in the fourth quarter of 2022. Over the year, Intel recorded $63.1 billion in revenue, compared to 79 billion in 2021. Whether on the side of its components intended for computers or its data centers, the American founder had a difficult year, seeing its turnover in these two segments fall by 23% and 15% respectively.
$3 billion in savings in 2023
Against a backdrop of sluggish sales, Intel has decided to tighten its belt in recent months. Thus, the firm led by Pat Gelsinger does not rule out cutting thousands of jobs to reduce its expenses by 3 billion dollars in 2023, before reaching 8 to 10 billion dollars in savings per year by 2025. .
Determined to cut back, Intel is reconsidering most of its projects, like its mega-factory in Germany. The construction of the first two production units was to begin in the first half of 2023 before commissioning scheduled for 2027, but the American founder finally decided to delay the start of the work.
With soaring energy and raw material prices, geopolitical tensions and even the fall in demand on the semiconductor market, Intel has revised its calculations and is no longer counting on a budget of 17 billion euros. to build its German factory, but on construction costs which would now be around 20 billion euros. Therefore, the group is waiting for a boost from the German government to help it overcome the economic difficulties that have accumulated for several months.
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