Site icon IT World Canada

Intel to cut products to save costs

As an embattled Intel tries to implement its grand comeback plan, Intel has announced that it is cutting not only jobs but also products, and that it has made difficult decisions to cut billions of dollars.

Intel announced plans to discontinue some products as part of a massive spending cut that the chipmaker expects to reach up to $10 billion a year by 2025.

Intel said the cuts were necessary because of “worsening economic conditions,” which, according to CEO Pat Gelsinger, led to double-digit declines in PC and server processor sales in the third quarter of 2022.

Intel could try to sell products to a willing buyer, as it has done with its NAND flash and solid-state drive businesses. In other cases, the company could decide to discontinue and write off products, as it did with its Optane memory business in July.

As part of Gelsinger’s much-discussed IDM 2.0 strategy, Intel also expects to make savings by decoupling its hardware and software design teams from its chip manufacturing business.

Intel has announced that the Pentium and Celeron branding for notebook processors will expire in 2023. Both branding are now used for Intel’s entry-level offerings, while the higher-end products are represented by the Intel Core branding, which includes several levels from Core i9 to Core i3.

The company has stated that the removal of the Pentium and Celeron branding will not affect existing processors, meaning you will continue to see them while they are still available in retail stores while stocks last.

The sources for this piece include an article in TheRegister.

Exit mobile version