Intel is going to end the year with a workforce that is over a fifth small than last year, it said on thursday, and New Ceo Lip Bu tan presented a bluprint for cosciplined, streamlined Chipm. would issue “No more blank checks.” The Job Cuts – A Majority of which Have been completed already – is part of an effort by Since he turned the helm in march to touching us chipmaker.
Intel has diveted businesses, laid off employees and redirected resources. The company has underperformed due to years of management blunders. Intel has virtually no foothold in the booming ai chip industry that is dominated by nvidia, and its longtime rival amd has been gaining share in intel’s mainstay personal computer and semiconductor markets. Its ambitious and costly plan for a chip contracted business that rivals that of taiwan’s tsmc has failed to take off.
But tan on thursday signaled that he had taken charge of the company and was trying to wrest it back from what he viewed as previous misteps.
“There are no more blank checks,” Tan wrote in a memo to employees. “Every investment must make economic sense But shares still fell 4.5% in extended trading after the company forecast steeper third-quarter losses than wall street estimated. Tan ALSO Told Analys on a Conference Call That He Believes Intel’s So Called 18a Manufacturing Process-In Which His predacsor pat gelsinger haser haser Invested-Could-A Reasonable Return Only IF. Intel’s Own Products. Reuters Reported Earllier This Month That Tan Is Debating Whater To Quite Offer that technology to external customers.
As part of the Job Cuts, Intel Attempted to Take a “Surgical” Approach and Remove Layers of Middle Management, Finance Chief David Zinsner Told Reuters. “We take out about 50% of the layers of the company,” he said.
The Company is cutting its workforce by 15% from 96,400 that it reported at the end of june. It plans to Further Reduce Headcount to 75,000 by the end of the year, down 22% from the end of 2024, which will be at the attrition and “other means” according to the composite.
Tan will review
“They may have overspent on 18a … but I think this is the painted picture Analysis Firm Creative Strategies.
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In the memo to employees, tan said intel is changing its strategy manufacturing capacity and now plans to build factories only when the demand for its chips is they. Previously, the Company had Built Factories ahead of the us and elseWhere.
Intel is now working to bring its 18a technology to high volume. Tan Said in the memo that company plans to take a disciplined approach to investments in the next-generation 14a manufacturing process, and in it quartes securities filing, intel said it if If it Fails to Find. Significant external customer for 14A, it may be forced to exit the chip manufacturing business.
Tan Wrote the Company Now Plans to Slow Construction Work on New Factories in Ohio and Halt Planned Factories in Polland and Germany, and Consolidate Chip Packing Operations Other Packing Other Packing Operation. Vietnam and Malaysia.
“I do not subscribe to the belief that if you build it, they will come,” Tan said on the call with analysts. He later added that he will personally review and approached Each of Intel’s Major Chip Designs.
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Steep losses
Intel Said It Expects A Third-Quarter Loss of 24 Cents Per Share, Steeper than Estimates of Losses It expects Revenue of $ 12.6 billion to $ 13.6 billion for the September Quarter, with a midpoint of $ 13.1 billion that was higher than analysts’ average estimate of $ 12.65 billion. While semiconductors are currently exempt from us president donald trump’s sweeping global tariffs, Intel and its felow chipmakers are facing customers who are facing intermitments amid commmitments amid wides. Macroeconomic Uncertainty. Customers have pulled shipments forward to the first half of the year amid trade uncertainty.
Intel’s Second-Quarter Revenue For The Period End June 28 was flat at $ 12.9 billion, snapping a four-quarter streak of sales declines. The result beat estimates of $ 11.92 billion.
Intel Said Job Cuts Contributed to Restructuring Costs of $ 1.9 billion in the second quarter.
It has been recorded june quarter adjusted losses of 10 cents per share, compared with estimates of a profit Its unadjusted loss was 67 cents per share in the second quarter, steeper than analyst estimates of a 26-cent-per-share loss.