Intel said Thursday it plans to slash its headcount to 75,000 by the finish of this yr, down from 99,500 at the finish of 2024.
The Santa Clara, Calif.-based chipmaker disclosed the layoff objectives as it forecast steeper third-quarter losses than Wall Street estimates on Thursday, despite anticipating greater gross sales than analysts expected while new CEO Lip-Bu Tan steers the company through a historic turnaround.
The outlook comes as traders pushed Intel’s shares up 14% this yr, in the hopes of Tan undoing years of strategic errors that have exempted the company from the AI increase dominated by Nvidia.
Intel forecast steeper third-quarter losses than Wall Street estimates on Thursday. Getty Images
The company said it expects a third-quarter loss of 24 cents per share, steeper than estimates of losses of 18 cents per share, according to knowledge from LSEG. Intel expects income of $12.6 billion to $13.6 billion for the September quarter, with a midpoint of $13.1 billion that was greater than analysts’ average estimate of $12.65 billion, according to knowledge compiled by LSEG.
Growth in the PC market is unsure after prospects pulled shipments ahead to the first half of the yr amid ongoing commerce negotiations, analysts have said. Shipments of PCs rose 6.5% in the June quarter according to knowledge from International Data Corporation.
While semiconductors are at present exempt from President Trump’s sweeping international tariffs, Intel and its fellow chipmakers are dealing with prospects who are reluctant about spending commitments amid widespread macroeconomic uncertainty.
Intel’s second-quarter income for the period ended June 28 was flat at $12.9 billion, snapping a four-quarter streak of gross sales declines. The outcome beat estimates of $11.92 billion, according to LSEG knowledge.
CEO Lip-Bu Tan has also centered on streamlining the group and lowering its workforce. REUTERS
CEO Tan has been focusing on a next-generation chipmaking course of called 14A to win massive exterior prospects, shifting away from 18A, a technology that his predecessor Pat Gelsinger had spent billions of {dollars} to develop, Reuters has reported.
Tan has also centered on streamlining the group and lowering its workforce. In April, Intel agreed to promote a 51% stake in its Altera programmable chip business for $4.46 billion.
Intel said job cuts contributed to restructuring prices of $1.9 billion in the second quarter.
It recorded June quarter adjusted losses of 10 cents per share, in contrast with estimates of a revenue of 1 cent per share. Its unadjusted loss was 67 cents per share in the second quarter, steeper than analyst estimates of a 26-cent-per-share loss.