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Intel’s Sales and Marketing Group (SMG) is targeting a 35% cost reduction, as announced during an August 5 all-hands meeting. This significant cut will impact jobs and marketing expenses, with a directive to "simplify programs end-to-end" by the end of the year. This comes shortly after Intel revealed plans to lay off 15% of its workforce—over 15,000 employees.

In a statement to CRN, Intel said, "We are becoming a simpler, leaner, and more agile company, easier for partners and customers to work with, while focusing our investments on the greatest opportunities for innovation and growth. This is about building a stronger Intel for the future, with our partners integral to those plans."

One of the toughest challenges for Intel SMG will be deciding on specific job cuts. One strategy is to eliminate roles with overlapping responsibilities, such as those managing customer accounts and industry-focused teams. These overlaps can confuse customers, who often interact with multiple Intel employees without clear account ownership.

Another cost-saving measure involves trimming the marketing budget and simplifying programs. Intel expects these changes to save at least $100 million in the second half of 2024 and another $300 million in the first half of 2025. Beyond cost savings, the goal is to "enable faster decision-making" and improve "return on investment."

Intel’s Market Development Fund (MDF) will also be significantly affected. The MDF is crucial to Intel’s marketing efforts, helping OEMs and partners fund events, training, and more. A former Intel executive noted that the MDF has been vital in winning business, especially as Intel's products have lost their competitive edge.

"Intel lost its product leadership mojo, and the most valuable thing we still offered partners was the sales and marketing relationship, along with funding," the former executive warned.

While these changes may be necessary for Intel to stay competitive, partners are anxious about the impact on their businesses. "No one knows what's coming. Everyone’s hunkering down and waiting for news," said Maingear CEO Wallace Santos.

Another Intel partner executive expressed concern, saying, "Intel is investing in the foundry, which they must do. But they’re also trying to revive their business at the same time, and doing both is nearly impossible. Something has to give." They added, "The question is, how much will be sacrificed?"

Editor：Lulu

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