Intel’s new earnings report allows you to calculate the number of layoffs, both past and future, and talks about the large-scale curtailment of projects.
In April, Intelfor the first time announced future layoffs and has since laid off thousands of employees Report on the company’s second-quarter earnings reveals a sharp decline in its operations. Intel says it is abandoning planned projects in Germany and Poland, shutting down its operations in Costa Rica, and plans to end 2025 with a total of «core employees» around 75,000.
At the end of last year, Intel employed 109,800 people, of whom 99,500 were «core employees». So, this year, the company will lay off about 24,000 people and shrink by about a quarter. During the earnings conference, Intel CEO Lip-Bu Tan said that the company had once overinvested in new factories without ensuring that they were adequately supported by product demand. Production became «unnecessarily fragmented», while it should have been increased only in relation to specific stages.
«I do not support the belief that if you create something, they will come. Under my leadership, we will create what customers need, when they need it, and earn their trust,» Lip-Boo Tan said.
In Germany and Poland, where Intel planned to spend tens of billions of dollars on «mega-factories» that would employ 3,000 people and an assembly and testing center that would employ 2,000 workers, respectively, «will no longer move forward with the planned» projects. In Costa Rica, where Intel had hired more than 3,400 employees, the company is apparently shutting down, at least to a large extent. It will «consolidate its assembly and testing operations in Costa Rica into its larger facilities in Vietnam».
The company also continues to cut costs in Ohio: «Intel will further slow the pace of construction in Ohio to ensure that costs are in line with market demand». CFO David Zinsner says Intel will continue to invest in the facility and construction will continue.
Partly due to the $1.9 billion Intel has set aside for downsizing and restructuring, the company is still losing money this quarter. The report shows a loss of $2.9 billion on $12.9 billion in quarterly revenue (unchanged from last year). Amid the ongoing artificial intelligence boom, Intel’s data center business grew by only 4% year-on-year to $3.9 billion. PC chip production decreased by 3% to $7.9 billion Intel’s lithography business for chip production for third-party customers increased by 3% to $4.4 billion. The company says it is cutting costs by $17 billion during the year.
«The first Panther Lake processor is still expected to ship later this year, with additional SKUs coming in the first half of 2026», — the report also says.
According to the CEO, the next Nova Lake processor will be available by the end of 2026. He says that «has taken steps to correct past mistakes regarding»’s multithreading capabilities in Intel’s performance processor cores. Moreover, the CEO takes personal responsibility for each new chip design. The company is also ramping up production of its relatively popular Lunar Lake processors in the next quarter.
Source: The Verge
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