Is Intel's cost-cutting strategy working in 2024?

Intel's cost-cutting strategy has shown some positive results, but its effectiveness in 2024 is mixed due to various factors impacting financial performance.

1. **Revenue Decline and Strategic Restructuring**:
- Intel's stock performance in 2024 has been dismal, with a 60% loss in market value, reflecting broader financial struggles.
- The company's revenue has declined, and it posted a net loss for the year.
- Intel announced a $10 billion cost reduction plan, indicating a strategic effort to improve efficiency and competitiveness.
2. **Operational Efficiency and Workforce Reductions**:
- The company has made significant progress on its cost reduction plan, including a more than 15% reduction in workforce.
- Intel has also suspended dividends, which is a common cost-cutting measure when a company is facing financial challenges.
3. **Challenges and Setbacks**:
- Despite cost-cutting efforts, Intel's gross margin has declined due to factors like the ramp of AI PC products and non-core business charges.
- The company's AI accelerator, Gaudi 3, has seen slower-than-anticipated adoption, affecting revenue targets.
4. **Financial Performance and Outlook**:
- Intel's third-quarter financial results showed revenue above the midpoint of their guidance, indicating some operational strength.
- The company's cash from operations has been positive, and it has been working to improve liquidity.
5. **Conclusion**: While Intel's cost-cutting strategy has led to some operational and financial improvements, such as workforce reductions and revenue alignment with guidance, the overall financial performance in 2024 has been lackluster due to declining revenue and gross margin challenges. The effectiveness of the cost-cutting strategy is partially offset by these factors, making it a mixed assessment for 2024.

In summary, Intel's cost-cutting strategy has shown some positive signs of improving operational efficiency and competitiveness, but it has not fully translated to improved financial performance in 2024 due to ongoing revenue declines and gross margin pressures.