Intel loses 15,322 million euros during the third quarter in full restructuring plan

Restructuring expenses skyrocketed by 589%

Nov. 1 () –

The American processor company Intel obtained attributed net losses of 16,639 million dollars (15,322.2 million euros) in the third quarter of this year, which contrasts with profits of 297 million dollars (273.5 million euros ) from the same period in 2023, as reported by the firm, which is engaged in its restructuring plan.

Intel has attributed these results to the restructuring expenses it is facing, as they “significantly” affected the profitability of the third quarter. “We made important steps toward our cost reduction goal,” said Intel CFO David Zinsner.

In addition, the basic losses per share in the third quarter of 2024 stood at 3.88 dollars (3.57 euros) compared to the basic profits recorded twelve months before of 0.07 dollars (0.06 euros) per share.

For its part, the company’s income in the quarter was 13,284 million dollars (12,233.1 million euros), which represents a decrease of 6.2% in the company’s billing. By business segment, the computing division fell 7%, to 7,300 million dollars (6,722.5 million euros), while the data and artificial intelligence (AI) division grew 9%, to 3,300 million dollars (3,038.9 million euros).

Later, the networks area saw its turnover grow by 4%, to 1,500 million dollars (1,381 million euros), while Mobileye, the autonomous vehicles unit, and foundry services reduced revenues by 8% in both cases. Thus, its business figures were 485 million dollars (446.6 million euros) and 4,400 million dollars (4,052 million euros).

On the costs side, those associated with sales were 11,287 million dollars (10,394.7 million euros), 38% more, and those of R&D reached 4,000 million dollars (3,683.7 million euros ), another 4.6% more.

Along the same lines, marketing, general and administrative expenses increased by 3.2%, to 1,383 million dollars (1,273.7 million euros), but restructuring expenses shot up by 589%, to 5,622 million dollars (5,177.7 million euros).

For his part, Intel CEO Pat Gelsinger highlighted the results obtained between July and September underline the solid progress that the firm is making in the plan it announced last quarter to reduce costs, simplify its portfolio and improve efficiency. organizational.

“We have achieved revenue above the midpoint of our forecasts and are acting urgently to position the business for sustainable value creation in the future,” he added.

On the last day of the quarter, June 29, Intel had a workforce of 124,100 workers, of which 115,000 were assigned to Intel’s main operations and the rest to Mobileye, other subsidiaries or units pending sale.

In this context, the company announced last quarter that it would carry out a cost savings plan, which involved carrying out organizational and expense changes and the dismissal of 15% of the staff, that is, about 18,000 people.

Finally, the American multinational has announced that it expects revenues of between 13.3 billion and 14.3 billion dollars (12,249-13,170 million euros) for the last quarter of the year.