Intel Announces Major Cost-Cutting Initiatives Amid Workforce Reductions

Published 6 hours agoINTC

Intel Announces Major Cost-Cutting Initiatives Amid Workforce Reductions

Intel has unveiled a significant cost-cutting strategy aimed at reducing operating expenses to $17 billion in 2025 and further to $16 billion in 2026. As part of this initiative, the company plans to reduce its workforce by more than 20%, a move aligned with their operational efficiency goals. Although the timing for these job cuts has not been disclosed, these measures reflect an attempt to streamline operations under the guidance of new CEO Lip-Bu Tan.

In its latest earnings report, Intel reported a revenue of $12.7 billion for the first quarter of 2025, matching year-over-year figures. The company's non-GAAP earnings per share (EPS) stood at $0.13, surpassing analysts' expectations. However, Intel provided a softer revenue guidance for the second quarter, projecting between $11.2 billion and $12.4 billion in revenue, with a non-GAAP EPS forecast of $0.00, which came in below analyst predictions. According to reports from Insider Monkey, this disappointing guidance contributed to a more than 5% decline in Intel's stock value during after-hours trading.

CEO Lip-Bu Tan has emphasized a focus on accelerating Intel's business execution and enhancing customer responsiveness, acknowledging that reclaiming market share will take time. The company’s chipmaking division, however, posted a strong performance with $4.7 billion in revenue, exceeding projections. Despite the current challenges, Tan remains concentrated on swiftly implementing strategies to drive operational improvements while reinforcing that there are "no quick fixes" for the challenges ahead.

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