Intel’s Q3 2022 Financial Reports Shows Steady Progress, Massive Layoffs Expected by 2025
The financial figures for Intel’s third quarter of fiscal 2023 have been released. After generating $15.3 billion in revenue, a 20% year-over-year decline, Intel is now profitable again. However, the firm was forced to cut its outlook for the fourth quarter due to macroeconomic instability and ongoing difficulties in its client and data center business segments.
Even though Intel’s Q3 FY2023 sales were $15.3 billion, down 20% from the same quarter a year prior, it was still within the range of the company’s projection, which was given back in July. Additionally, Intel’s gross margin decreased to 45.9%, which is still well behind the company’s historical performance or long-term objectives, even if it is higher when compared to the gross margin in Q2. The business’s net income fell by 85% yearly to $1 billion.
Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter.”
-Pat Gelsinger Intel CEO
With a gross margin of around 45%, Intel anticipates fourth-quarter revenue of between $14 billion and $15 billion (down between 23% and 28% YoY). Intel expects its full-year revenue to be between $63 billion and $64 billion, a fall of $2 billion to $4 billion from the July projection and a 14% to 16% from the prior year. There is little possibility that Q4 2023 will be a breakthrough quarter for Intel. The anticipated gross margin for the firm is 47.5%.
Intel is launching a program to reduce expenses by $3 billion in 2023 and $8 billion to $10 billion by 2025 since it anticipates macroeconomic difficulties to endure for at least a few quarters. In essence, this confirms Intel’s aim to downsize its staff drastically.
The stock is presently up more than 4% in after-hours trade, indicating that investors responded favorably to Intel’s most recent earnings report. On October 20, Intel introduced its 13th generation “Raptor Lake” CPUs, and preliminary indications indicate that demand for these items are relatively strong.