Intel plans to reduce costs in sales and marketing division by 35%: report

Intel (NASDAQ:INTC) revealed on Aug. 1 that it was reducing its global workforce by 15%, or about 15,000 employees, in order to deliver $10B in cost savings by 2025.
Some of these deep cuts will come from Intel’s sales and marketing group, where it hopes to reduce costs by 35% by the end of the year, according to a report today by CRN.
Despite the large cost reductions to the group, an Intel spokesperson told CRN the company remains “deeply committed to the channel and will continue to prioritize the success of the entire Intel ecosystem.”
“Our annual revenue in 2020 was about $24B higher than it was last year, yet our current workforce is actually 10% larger now than it was then,” said Intel CEO Pat Gelsinger, in a letter to employees on Aug. 1. “There are a lot of reasons for this, but it’s not a sustainable path forward.”
Concurrently, Intel is building its foundry business, which it expects to breakeven by fiscal 2027 and reach double-digit returns by fiscal 2030.

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