Intel CEO Pat Gelsinger on potential layoffs, the ‘unpredictable’ economy and consolidation in the chip market

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Shane Snider

Intel CEO Pat Gelsinger spoke about everything from potential layoffs following tough and unpredictable macroeconomic conditions to what he hopes will be “further consolidation” in the chip market.

Intel CEO Pat Gelsinger said the chip giant faces tough times amid a turbulent macroeconomic environment.

“Macroeconomics [situation is] unpredictable, tough market. … It’s just hard to see good news on the horizon – inflation in the United States, the situation in Europe with energy and war, and in Asia,” Gelsinger said after Intel reported a 59% drop in net profit to $2.4 billion from a 15% drop in sales to $15.3 billion for its fiscal third quarter ended Oct. 1. “So in that context, we’re still looking to have economic headwinds early next year.”

That said, Gelsinger said he remains optimistic about the company’s IDE 2.0 turnaround plan that ties Intel foundries tightly to designing ICs for Intel and its foundry customers. This model establishes consistent processes, systems, and safeguards across business units, design, and manufacturing teams.

“We are staying true to strategy by making cost adjustments and trying to balance the market outlook as we gain share in some segments and fight for share in other segments,” he said. said Gelsinger. “I was very pleased with how the team improved our execution in a really, really tough environment.” Here’s a look at what Gelsinger had to say about the tough times ahead and how he expects Intel to weather the storm.

    Learn more about Shane Snider

Shane Snider

Shane Snider is an associate editor covering personal computing, mobile devices, semiconductor news, hardware reviews, breaking news and live events. Shane is a seasoned journalist, having worked for newspapers in upstate New York and North Carolina. He can be contacted at [email protected]

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