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Intel shares climbed more than 5 percent in after-hours trading on Thursday after the organization promised to secure up to $10 billion in cost savings and efficiency improvements.

That announcement came as the business issued lower-than-expected profits forecasts for the fiscal year after exceeding earnings and revenue estimates in the previous quarter.

Intel announced 59 cents per share earnings for the third quarter, beating Wall Street’s prediction of 32 cents per share. Revenue decreased by 15 percent to $15.34 billion, barely over the $15.25 billion expectation. The company’s net income was $1.02 billion, significantly down from the $6.82 billion profit posted a year ago.

The cuts will be phased

During a conference call, Intel Chief Executive Pat Gelsinger stated that the business expects economic instability to last until 2023. David Zinsner, Intel’s head of finance, warned that the business believes a worldwide recession is possible.

Given the anticipated challenges, Intel said it intends to cut its cost of sales and operational expenditures by around $3 billion in 2023. These cost cuts will be phased over time, with the business seeking to save anywhere from $8 billion to $10 billion by the end of 2025.

Earlier this October, insiders claimed that Intel intends to lay off thousands of employees to slash expenses.

Intel’s mixed results

Intel’s Client Computing business, which encompasses the sale of chips for PCs, reported $8.12 billion in quarterly revenue, a 17 percent decline from a year ago. The revenue managed to beat analyst estimates of $7.58 billion. According to Gartner, PC shipments fell almost 20 percent in the last quarter, explaining Intel’s dip.

Looking ahead to the fourth quarter, Intel expects to bring in 20 cents per share on $15 billion in revenue, falling short of Wall Street’s projection of 66 cents per share on $16.27 billion in revenue.