Intel

Intel‘s cost reduction plan that aims to save $3 billion next year in operating costs will include layoffs. The company seeks to slash operational expenses by up to $10 billion within three years.

Pat Gelsinger, Intel’s CEO, announced the spending cuts in October during the company’s third-quarter earnings call. In addition, Intel will reduce $2 billion in capital expenditures.

“While we are not satisfied with our results, we remain laser-focused on controlling what we can,” Gelsinger said during the company’s earnings call.

Gelsinger noted that layoffs are necessary to “optimize headcount,” which he said will add $2 billion more in savings.

“These are difficult decisions affecting our loyal Intel family,” Gelsinger said. “But we need to balance increased investment in areas like leadership and product and capacity in Ohio and Germany with the efficiency measures elsewhere as we drive to have best-in-class structures.”