“First, we completed the vast majority of our headcount actions during Q3 and we are on track to our greater than 15% workforce reduction before the end of the year.”

In context

“nhance our market competitiveness. Dave will go into these charges in detail shortly. Operationally, Q3 results exceeded our expectations as we achieved key milestones across Intel Foundry and Intel Products. Underlying trends in the business are improving at a measured pace, and our outlook for Q4 is modestly above current consensus. Overall, our stepped up focus on efficiency and execution across business is having a positive impact. We have a lot more ahead and we are acting with urgency to deliver on our priorities. We need to fight for every inch and execute better than ever before and our teams are embracing this mindset as we build a leaner, more profitable Intel. Now, let me provide more details starting with an update on our cost reduction plan that we announced three months ago. First, we completed the vast majority of our headcount actions during Q3 and we are on track to our greater than 15% workforce reduction before the end of the year. These were hard but necessary changes that are reducing complexity and making us a leaner, faster and more agile company. Second, we have reduced our capital expenditures by over 20% relative to the plan we had entering the year. We are now well positioned with our shell ahead strategy to react quickly to market demand. With our transition to EUV now complete and the launch of Intel 18A on the horizon, we have a more normal cadence of node development at Intel 14A and beyond. In addition, our teams are maniacally focused on improving fab productivity, allowing us to produce more with less over time. Third, we have begun to simplify and streamline parts of our portfolio to unlock efficiencies and create value. We are re-establishing product portfolio leadership by narrowing our focus on fe”