Following a surprise $500 million loss on its latest quarterly report, Intel CEO Pat Gelsinger says the company needs “a bit of austerity.”
Gelsinger has been working to turn Intel around and help the company achieve its former greatness. While the company has definitely looked stronger than it has in years, it hit a major speed bump on the road to recovery with its latest quarterly earnings, reporting a surprise loss of roughly $500 million. The company also announced it would raise prices on CPUs to combat inflation.
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In response, Gelsinger told Yahoo Finance Live’s Brian Sozzi that the company needs a bit of austerity to help it refocus.
“This is a time for a bit of austerity,” Gelsinger said. “We’ve exited our Optane business, we sold the drone business, I’ve made six product exits since we’ve been here, and those are allowing us to put more focus on key areas.
“A bit of austerity helps to drive a more accelerated pace to the transformation that we have underway.
“But we also say, hey…this is the time to invest for the future.”
Gelsinger did not elaborate on any additional austerity measures that may come into play.