Intel shares fell more than 8% after announcing 25,000 job cuts and scrapping European projects. The tech giant's move is part of a turnaround plan to improve its financial performance.
Intel Corp. is shedding thousands of workers and cutting expenses as its new CEO works to revive the fortunes of the struggling chipmaker that helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc.
Intel Corp's (NASDAQ:INTC, ETR:INL) latest results landed with a mixture of optimism and hard reality for anyone tracking the future of global chipmakers. The company reported stronger revenue than expected, but outlined a tough plan to tackle losses and sharpen its strategy as artificial intelligence continues to reshape the sector.
Shares of Intel were down 5.8% in Frankfurt on Friday after the company said it expects steeper losses than Wall Street forecasts in the third quarter and announced plans to slash jobs.
Intel warned investors on Thursday that it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories.
Intel Corporation (NASDAQ:INTC ) Q2 2025 Earnings Conference Call July 24, 2025 5:00 PM ET Company Participants David A. Zinsner - Executive VP & CFO John William Pitzer - Corporate Vice President of Corporate Planning & Investor Relations Lip-Bu Tan - CEO & Director Conference Call Participants Aaron Christopher Rakers - Wells Fargo Securities, LLC, Research Division Benjamin Alexander Reitzes - Melius Research LLC Joseph Lawrence Moore - Morgan Stanley, Research Division Ross Clark Seymore - Deutsche Bank AG, Research Division Stacy Aaron Rasgon - Sanford C.
Intel may halt development of its next-gen chip, 14A, due to financial concerns. The 14A chip has been crucial for Intel to compete with Taiwan's leading chipmaker, TSMC.
Intel Corporation's Q2 '25 results beat Street estimates; margins are still hurting, but CEO Tan is cutting aggressively, and 18A is on track. Tan is being transparent about the impact of the tariff pullback on sales and his desire to reduce underutilized fabs without confirming demand. This is a good approach because it keeps expectations manageable and buys more time to lead up to 18A.
The Silicon Valley chip company, which has been struggling, quantified the job cuts it is making as it seeks to turn its business around.
The chip maker's stock was struggling for direction after mixed results and guidance.
Intel Corp (NASDAQ:INTC, ETR:INL) reported mixed earnings for the second quarter, with revenue ahead of Wall Street estimates as profits were impacted by one-time charges. Revenue for the quarter was $12.9 billion, flat year-over-year and above estimates of $11.87 billion.
The Santa Clara, Calif.-based chipmaker disclosed the layoff goals as it forecast steeper third-quarter losses than Wall Street estimates.