Overview

• Intel will cut its workforce to 75,000 by year-end, trimming about 24 percent of employees and eliminating roughly half of its management layers.
• The company halted plans for new fabs in Germany and Poland, slowed factory construction in Ohio and consolidated packaging operations from Costa Rica into Vietnam and Malaysia.
• Second-quarter revenue held steady at $12.9 billion, ending a four-quarter sales slide but resulting in a $2.9 billion net loss that included $1.9 billion in restructuring charges.
• Intel forecast a third-quarter loss of 24 cents per share alongside revenue guidance of $12.6 billion to $13.6 billion, with a midpoint that exceeded analysts’ average estimates.
• CEO Lip-Bu Tan has mandated that future factory investments be backed by customer demand and cautioned that Intel may withdraw from advanced chip manufacturing without external commitments for its 14A process.