Intel Russia shrinks to one employee, incurs losses with zero sales

Just a few days after Russia's invasion of Ukraine, Intel announced on March 3, 2022, that it would no longer supply products to customers in Russia. On April 5, the decision was made to completely cease operations in Russia. As Abachy now reports, Intel has succeeded in a near-complete withdrawal from Russia: while around 1200 people were still employed at the beginning of 2022, only one individual was still working for Intel Russia in 2023.

Intel Russia is made up of Intel Technologies and Intel AO, and neither company generated any revenue in the 2023 financial year. On the other hand, the laid-off employees reduced the losses of the two groups by over 92% each, so that Intel Technologies generated a loss of around $230,000, while Intel AO cost the Group $2.08 million. 

In 2021, the two divisions of Intel Russia were still able to generate a total turnover of 7 billion roubles (approx. $75 million). The losses are primarily due to the costs of renting various buildings. The fact that Intel is holding on to these suggests that the company is considering a return to Russia as soon as the political situation eases.

As a report from Bloomberg has revealed, the sanctions against Russia have been hardly successful in terms of exporting Intel and AMD processors up to the Core i9-14900K, as Russia is said to have imported chips to the value of $1.7 billion in 2023 alone, mainly via China, Turkey and the United Arab Emirates.