Intel laid off an unspecified number of employees in its Sales and Marketing division. Intel didn't give any specifics, but the company's representative confirmed the layoffs are a part of its restructuring process, which involves a new operating model.

This is the latest round of layoffs to hit Intel since CEO Pat Gelsinger announced in October 2022 that the semiconductor giant planned to cut spending by as much as $10 billion through 2025 to weather an “abrupt and pronounced slowdown in demand.”

The company has not said how many employees it has laid off since then. The only numbers disclosed by Intel have been regarding individual layoff rounds impacting 50 or more employees within a 30-day period at its offices in California, as required by the state’s Worker Adjustment and Retraining Notification (WARN) Act.

The layoffs were enacted the same week Intel outlined a new financial reporting structure that separates the company’s product design businesses from its chip manufacturing operations, revealing that the former suffered from a $7 billion operating loss last year.

Intel is separating the businesses in a bid to turn its chip-making arm, now known as Intel Foundry, into an independent contract chip manufacturing business that competes with Asian foundry giants TSMC and Samsung.

Intel already intends to make chips for Nvidia. Earlier this year, Nvidia selected Intel for its GPU packaging business, which could produce over 300,000 H100 GPUs per month. 

When it announced the new financial reporting structure on last Tuesday, the company said Intel Foundry’s “operating losses are expected to peak in 2024” as it completes Gelsinger’s node acceleration plan. The chip manufacturing business is expected to “achieve break-even operating margins midway between now and the end of 2030, when it targets 40 percent non-GAAP gross margins and 30 percent non-GAAP operating margins,” it added.

Editor：Vicky

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