Intel reported zero revenue and one employee remaining in Russia

Russian legal entities of the American technology company Intel - Intel A/O and Intel Technologies - showed zero revenue at the end of 2023, as follows from their reports. Both companies were unprofitable, but compared to the previous year, the size of the net loss decreased: for Intel A/O - by 92.1%, to 192 million rubles, for Intel Technologies - by 96.7%, to 20 .8 million rub.

For comparison, Intel Corporation's total revenue for 2023 decreased by 14% compared to the previous year and amounted to $54.2 billion, and net profit fell almost five times, to $1.7 billion.

In 2023, both Russian legal entities of Intel had an average number of employees equal to one person. Only the general DIRECTOR Alina Klushina was listed in the companies. In 2022, Intel A/O had 741 people, but by the end of the year the company had one employee, and Intel Technologies had an average headcount of 47 people, but by the end of the year there was also one employee left.

How Intel is present in RUSSIA

Intel entered the Russian market in 1991. In 2000, the company's Nizhny Novgorod research and development center opened, and in 2020, a new office of the Intel R&D center opened there, which included existing and new employees. At that time, it was called one of the largest such divisions of the company outside the United States , it was engaged in the development of projects in the field of software, artificial intelligence, computer vision, fifth generation mobile communications (5G) and the Internet of things, and its staff exceeded 1 thousand employees.

"Intel A/O" was engaged in information processing, development and testing of software products, and also provided services for the provision of premises for rent, "Intel Technologies" provided marketing services, provided technical support and consulting for users of Intel products. For example, in 2021, the revenue of these companies was 5.7 billion and 1.3 billion rubles. respectively.

But in the spring of 2022, after the outbreak of hostilities in Ukraine , Intel suspended operations in Russia, stating that it intended to support 1.2 thousand local workers. Intel products were also affected by sanctions from the United States and a number of other countries that prohibit high-tech exports to Russia. Intel has closed access to its website for Russian clients and users. In January last year, Intel returned to Russians access to the driver section on the website, but they could get there not directly, but through a corresponding request in a search engine. As the company explained, they gave Russian users access to downloading software and drivers due to warranty obligations.

Partner and HEAD of the Russian Assessment company Alexander Ivanov says that their experience of working with companies where shareholders are from “unfriendly countries” shows that they usually either terminate existing contracts that cannot be interrupted, and then freeze activities; or sell or transfer the local company to management; or they sell it to a third-party buyer and leave Russia completely. “Intel was one of the first to announce the suspension of activities in Russia in 2022, but did not withdraw from Russian companies,” says Ivanov. “But after the adoption of the 12th package of sanctions, parent companies will not be able to work with their Russian subsidiaries, so, in my opinion, there will be the first scenario: freezing at a level that does not require the support of the parent company.”

According to the head of special projects at RU-CENTER, Alexey Zamesov, the fact that the company continues to incur certain expenses, in particular for rent, may mean that it still expects the political situation to improve and does not exclude the possibility of a return. At the same time, he stipulates that the question of whether the company will suffer losses in Russia in 2024 remains open.