Overview

• Intel forecasts second-quarter revenue of $11.2–$12.4 billion, falling short of analyst expectations of $12.82 billion.
• The company plans to cut operating expenses to $17 billion in 2025 and $16 billion in 2026, alongside a $2 billion reduction in capital expenditures for 2025.
• Layoffs are expected to impact up to 20% of Intel's workforce, focusing on reducing management layers and bureaucracy to improve efficiency.
• CEO Lip-Bu Tan emphasizes a cultural shift to prioritize engineering, faster decision-making, and streamlined product development.
• Chinese tariffs of up to 85% on U.S.-made semiconductors pose significant risks to Intel's largest market, compounding financial and operational challenges.