Intel’s latest plan to achieve $10 billion in savings by the end of next year means operating costs will also be cut in sales and marketing, CRN reported. In particular, in the current half of the year, savings of $100 million will be achieved in this area; in the next half of the year, the amount of savings will reach $300 million. By the end of this year, in relative terms, the costs of the core division should be reduced by 35%.
Image Source: Intel
In general, as CRN notes with reference to a closed presentation by Intel’s Chief Commercial Officer and Executive Vice President Christoph Schell (pictured above), the company seeks to simplify its interaction with customers and partners in sales and marketing, so staff cuts will not be possible avoid in this direction as well. Schell heads Intel’s sales, marketing and customer relations division, so in his presentation he outlined the activities included in the cost optimization plan.
Expenses for promoting Intel products on the market will be revised. The trend has been observed for several years in a row, and former employees of the company, who wished to remain anonymous, indicated that after the loss of the obvious market advantage of its products in the market, Intel tried for some time to maintain its position through active marketing, but budgets for this purpose have begun to decline in recent years. shrink. In addition, the company simply needs to eliminate the duplication of some functions in the field of communications with customers and partners. In the “fat years” she could afford not to pay attention to this, but now the time has come to take up this problem closely.
The scale of cuts to marketing employees will become fully clear once Intel decides on its priorities in promoting products to the market. It is believed that cloud providers and products for the server segment will be included in this list. Overall, the company will try to maintain the structure of the sales and marketing division, which will allow it to realize its market advantages and strengthen relationships with partners and clients. “Our revenue has not grown as much as expected, and we have yet to benefit from trends like AI. Our costs are too high, our profits are too low,” Intel CEO Patrick Gelsinger said in a message to employees in early August.