Intel Plans to Layoff Workforce by Year-End
The chip maker said that it expects to have about 75,000 employees by the end of this year, according to the report. While CEO Lip-Bhas Tan had already started to consider a number of cost-cutting measures at Intel, as per the report. The Oregonian reported that Intel is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers.
The layoff is part of a broader cost-cutting effort. Intel has already cancelled chip plant projects in Germany and Poland and is slowing construction in Ohio, as per the Yahoo Finance report.
ALSO READ: When is Hulk Hogan’s funeral? Should the WWE icon receive a state funeral? Social media sparks heated debate
Intel Misses EPS but Beats Revenue Expectations in Q2
For the quarter, Intel brought in $12.8 billion in revenue, a bit higher than the $11.8 billion Wall Street was expecting, as per the Yahoo Finance report. But earnings came in at a loss of $0.10 per share, much lower than the $0.01 EPS analysts predicted, according to the report.
Impairment and One-Time Charges Weigh on Profits
The loss came as Intel said it took an $800 million hit due to equipment it can’t reuse, along with another $200 million in one-time costs, as reported by Yahoo Finance.ALSO READ: Is Starlink down today? Thousands affected as the service faces network disruption, social media users reacts
Intel Forecasts Stronger Q3, With Upbeat Revenue Outlook
Despite the tough news, Intel is optimistic about the next few months. It’s projecting third-quarter revenue between $12.6 billion and $13.6 billion, slightly above expectations, and believes some of the moves it’s making now will set it up for stronger performance later, as per the report.
Intel’s Stock Takes a Hit; Fierce Competition From AMD, Qualcomm, and Nvidia
Still, it’s been a challenging year for Intel. Following the earnings report, Intel stock fell more than 3%. Its stock has fallen 28% over the past 12 months, though it’s up 13% in 2025 so far, as reported by Yahoo Finance. Competitors like AMD and Qualcomm continue to pressure Intel in the chip space, and Nvidia has surged far ahead with a $4 trillion market cap, leaving Intel’s $98 billion valuation looking modest by comparison, according to the report.
Core Business Outperforms, Foundry Division Grows Slightly
Intel’s main business, the one that includes processors for laptops, desktops, and data centers, did outperform expectations, bringing in $11.8 billion, as per the report. Its newer Foundry business, which manufactures chips for other companies like Microsoft and Amazon, brought in $4.4 billion, up 2% from last year, as per Yahoo Finance.
Future of Intel’s 18A Chip Tech in Question
But questions are swirling about Intel’s future chip-making plans. A new report suggests the CEO may pivot away from the 18A chip technology that his predecessor heavily promoted and instead push a newer version called 14A. That shift could result in big financial write-offs, as per Reuters. For now, Intel says it’ll still use 18A for its own chips but hasn’t commented further, according to Yahoo Finance.
FAQs
Why is Intel laying off 15% of its workforce?
To cut costs and streamline operations as it faces lower profits and high competition, as per the Yahoo Finance report.
Did Intel beat revenue expectations in Q2?
Yes, Intel reported $12.8 billion in revenue, above the $11.8 billion expected, as per the Yahoo Finance report.
