Intel plans to make major savings in the future, as the CEO of the struggling semiconductor giant announced at the beginning of August. Now another concrete measure has been announced: over 35 percent of costs are to be saved in the marketing division by the end of the year.
Intel’s Chief Commercial Officer Christoph Schell announced this goal in an internal meeting on August 5, reports CRN and relies on information from a corresponding presentation.
Restructuring and staff reductions in marketing
Intel’s Sales and Marketing Group (SMG), which Schell heads, must “simplify the programs from start to finish” and make adjustments to responsibilities with regard to expenses that are detrimental to sales. Decisions should be made more quickly, it continues. Ultimately, the measures also mean staff cuts in this division. Intel CEO Pat Gelsinger threatened to cut 15,000 jobs at the beginning of August, and the share price lost almost 30 percent in the wake of deep red quarterly figures.
The measures at SMG are expected to initially result in savings of USD 100 million in the second half of the year, rising to USD 300 million next year.
Marketing campaigns are reduced
In a statement, an Intel spokesperson told CRN: “We are becoming a simpler, leaner and more agile company that partners and customers can work with more easily, while ensuring we focus our investments on areas where we see the greatest opportunities for innovation and growth“The business partners are still an essential part of making Intel stronger in the future, the spokesman assured.
However, the money for large marketing campaigns and partner programs is likely to decrease significantly. The report once again highlights how important such programs with OEMs have always been for Intel.
Savings program in full swing
The cost-cutting measures announced by CEO Gelsinger, which are ultimately intended to lead to cost reductions of 10 billion US dollars, have already partially taken effect. First, the in-house exhibition Intel Innovation was cancelled for this year. Shortly afterwards, it was announced that Intel had sold all of its shares in the British chip developer Arm.
Lunar Lake and Arrow Lake are just around the corner
On the Intel product side, this year’s new products are awaited with hope. The new series of mobile CPUs, Lunar Lake alias Core Ultra 200V, will be launched at the beginning of September. Arrow Lake-S for the desktop is expected to follow on October 10th. New server CPUs from the Granite Rapids alias Xeon 6900P family are also expected for the current quarter.
