June 24 - Intel (INTC, Financial) shares climbed more than 5% on Tuesday after the chipmaker confirmed a major restructuring of its global marketing operations.
The company plans to outsource a large portion of its marketing functions to Accenture (ACN), tapping into the consulting firm's AI capabilities in a move aimed at cutting costs and improving efficiency. Affected Intel employees are expected to receive updates on their status by July 11.
Under CEO Lip-Bu Tan, Intel is shifting toward automation and digital transformation to regain profitability. The company spent $856 million on advertising in 2024, with broader administrative expenses totaling $5.5 billion. Executives hope the outsourcing arrangement will reduce these figures significantly.
Accenture's role includes implementing AI tools to streamline customer engagement, automate workflows, and extract insights from market data. The company is also expected to help Intel adopt faster processes and manage spending more tightly.
Despite the short-term rally, analysts remain cautious on Intel's outlook, with price targets still hovering around current levels.
Intel's shift reflects broader tech trends where AI is not just enhancing work, but replacing entire operational layers.
