Intel CEO confirms layoffs and will cut costs by nearly 100 billion within three years

Beijing, Oct. 28 (Xinhua)-- Chip giant Intel has slashed costs as the sharp decline in demand for personal computers has dragged down the company's profits.

Intel CEO Pat Kissinger (Pat Gelsinger) said in an interview Thursday that the company will begin targeted layoffs and other adjustments, including reducing factory hours to cope with the economic downturn. He did not specify how many of Intel's more than 120000 employees would be affected. "We are actively solving the cost problem and improving the efficiency of the entire business." He said.

Intel said it was working to achieve $3 billion in cost cuts by 2023 and increase annualised cost cuts and efficiency gains to $8 billion-$10 billion by the end of 2025. As a result, Intel will cut costs by up to $13 billion (94 billion yuan) over three years. Intel recorded $664 million in restructuring expenses in the third quarter to reflect initial cost cuts.

Intel shares were down 3.45% as of Thursday's close. Intel shares jumped 5.6% in after-hours trading after the cost-cutting plan was announced.