Earnings Results: Intel stock rises on earnings beat, plans for layoffs, billions in cost cuts planned

by | Oct 27, 2022 | Stock Market

Intel Corp. shares rose after hours Thursday after the chip maker topped Wall Street earnings estimates for the quarter and PC-chip sales came in slightly higher than expected, while the company trimmed its full-year outlook once more and said it expects to cut costs by $3 billion in 2023, including layoffs. Intel
INTC,
-3.45%
shares rallied as much as 7% in after-hours trading, and closed the extended session up 5.4% after finishing down 3.5% in the regular session to close at $26.27.

“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” said Pat Gelsinger, Intel’s chief executive, in a statement. “To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future.” Intel booked $664 million in restructuring charges in the third quarter, and expects $3 billion in cost reductions in 2023, “growing to $8 billion to $10 billion in annualized cost reductions and efficiency gains by the end of 2025,” …

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