Intel CEO Pat Gelsinger On Potential Layoffs, The ‘Unpredictable’ Economy And Consolidation In The Chip Market

Intel CEO Pat Gelsinger said the chip giant faces tough times ahead in the midst of a turbulent macroeconomic environment.

“The macroeconomic [situation is] unpredictable, a tough market. … It’s just hard to see any points of good news on the horizon—inflation in the U.S., the situation in Europe with energy and the war, and in Asia,” said Gelsinger after Intel reported a 59 percent decline in net income to $2.4 billion 15 percent drop in sales to $15 3 billion for its third fiscal quarter ended Oct. 1. “So against that backdrop, we’re still looking to have economic headwinds as we go into next year.”

That said, Gelsinger said he remains upbeat about the company’s IDE 2.0 turnaround plan that tightly ties Intel foundries with integrated circuit design for both Intel and its foundry customers. That model establishes consistent processes, systems and guardrails among business unit, design and manufacturing teams.

“We’re staying true to the strategy—making cost adjustments and trying to balance market outlooks as we gain share in some segments and we fight for share in other segments,” said Gelsinger. “I was very pleased with how the team executed in improving our execution in an environment that was really quite tough.” Here’s a look at what Gelsinger had to say about the the difficult times ahead and how he expects Intel to whether the storm.

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