Intel has announced plans to lay off more than 20% of its global workforce after reporting a net loss of $800 million in the first quarter of 2025. The sweeping cost-cutting measures come as the semiconductor giant struggles to recover from declining profitability and intensifying competition in the chip industry.
The company’s Q1 revenue came in at $12.7 billion, exceeding analyst expectations of $12.3 billion. However, this did little to soften the blow of a 115% year-over-year drop in net income. Intel’s shares fell 6% in after-hours trading following the earnings release.
Recently appointed CEO Lip-Bu Tan, who took the helm in March, is leading the restructuring efforts aimed at streamlining operations and reviving growth. Intel plans to cut more than 22,000 jobs globally as part of this initiative. The company also intends to reduce annual operating expenses to $17 billion in 2025 and $16 billion in 2026, while trimming capital expenditures by $2 billion—despite receiving $7.86 billion in federal CHIPS Act subsidies.
In a move signaling a return to in-person work culture, Intel announced that starting September 1, employees will be required to work from the office at least four days a week.
While most of Intel’s core businesses saw declining performance—its personal computing group dropped 9% year-over-year to $7.6 billion—the company’s data center and AI division posted a rare bright spot, with revenues up 8% to $4.1 billion.
Looking ahead, Intel issued a cautious forecast for the second quarter of 2025, expecting revenue between $11.2 billion and $12.4 billion. This represents a potential decline of up to 12.5% compared to Q2 2024.
Intel’s stock has fallen 38% over the past year, underscoring the challenges the company faces in a fast-changing tech environment dominated by rivals like AMD and Nvidia. Analysts suggest the job cuts and structural reforms could be necessary steps in reshaping Intel’s future, but warn that long-term recovery will depend on the company’s ability to innovate and compete in high-growth areas like artificial intelligence and advanced manufacturing.
