By Mary Prenon
Announcing its second-quarter results on July 24, Intel Corp. said it is moving ahead with plans to cut about 15 percent of its staff by year’s end and scale back its plans to build chip facilities overseas. Its shares plunged more than 9 percent during the July 25 trading session.
The Santa Clara, California-based technology firm expects to maintain a core workforce of about 75,000—a reduction from 108,900 employees as of December 2024.
Intel reported second-quarter revenue of $12.9 billion, roughly flat compared with the same period in 2024, and above the $11.97 billion expected by FactSet analysts, which had implied a 7 percent year-over-year decline.
It also recorded an adjusted loss of 10 cents per share, compared with an adjusted profit of 2 cents per share a year earlier, and below the FactSet consensus estimate of a gain of $0.01.
The company expects third-quarter revenue of $12.6–13.6 billion.
“Our results reflect solid demand across our business and good execution on our priorities,” Intel CFO David Zinsner said in a company statement.
“The changes we are making to reduce our operating costs, improve our capital efficiency, and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future.”
In its attempt to improve its capital efficiency and cap gross capital expenditures of $18 billion for 2025, Intel is also taking steps to optimize its manufacturing footprint. As a result, the company is halting plans for its projects in Germany and Poland, along with consolidating its assembly and test operations in Costa Rica into its larger locations in Vietnam and Malaysia. The company will also slow the pace of construction on its Ohio facility.
“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” Intel CEO Lip-Bu Tan said.
“We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability, and create long-term shareholder value.”
Intel states these changes are designed to create a “faster-moving, flatter, and more agile organization.” As a result of these actions, the company reported that it recognized $1.9 billion in restructuring charges in the second quarter of 2025.
As of 12:36 p.m. ET, the company’s shares were down by 9.17 percent.
This month, the tech giant also sold 57.5 million of net Class A shares of Mobileye, adding nearly $922 million in assets. Intel still remains the majority shareholder in Mobileye.
During 2025, Intel also launched three new additions to its Intel® Xeon® series of central processing units, and the first Panther Lake processor SKU is on track to start shipping later this year. Intel 18A has also started production wafers in Arizona.
