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Intel Goes On Austerity Drive To Take On Rivals Like TSMC

Benzinga · 06/09/2022 09:29
  • Intel Corp (NASDAQ: INTC) has paused hiring in the PC desktop and laptop chips division as part of cost-cutting measures, Reuters reports.
  • In its most recent quarter, Intel's client computing group raked $9.3 billion of its $18.4 billion in revenue.
  • Intel could resume some hires within two weeks after the division re-evaluates priorities to contain macroeconomic uncertainty.
  • Also Read: Citi Sees Intel's Bear Case Taking Shape Sooner Than Expected
  • Intel's other cost-cutting measures included canceling some immediate travel for the group, limiting industry conference participation, and hosting virtual group meetings when possible.
  • Intel shares have shed 28% over the past year, and it told investors to brace for lower gross margins as it spends heavily to catch up to rivals like Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM).
  • Recently CEO Pat Gelsinger said the company would "slow" its hiring and onboard 23,000 newly hired employees over the next 90 days. Intel had 121,000 employees at the end of 2021.
  • Price Action: INTC shares traded lower by 0.49% at $41.03 in the premarket on the last check Thursday.