Intel’s revenue climbs amid workforce cuts
Intel Cuts 15 % of Core Workforce to Boost Agility
At the end of its fiscal quarter, the Silicon Valley chipmaker Intel announced a 15 % reduction of its core workforce, a move aimed at creating a faster‑moving, flatter organization. The company’s chief executive, Lip‑Bu Tan, who assumed the helm in March, said the layoffs were no easy task, but necessary amid a challenging global market marked by tariffs and export restrictions.
Key Highlights of the Quarterly Report
- Revenue topped expectations at $12.9 billion.
- Loss stood at $2.9 billion, including $1.9 billion of restructuring charges.
- Intel stopped projects in Germany and Poland to save billions.
Intensified Competition in the AI Chip Space
The earnings release came as rivals in artificial‑intelligence GPUs, led by Nvidia, grew rapidly. Intel’s traditional niche—chips for conventional computing—has been gradually eclipsed by the AI revolution. Asian powerhouses TSMC and Samsung dominate the custom‑made semiconductor market, further eroding Intel’s market share.
Market Reaction
Intel shares slipped slightly after hours following the earnings figures, reflecting investor caution.
Intel’s strategic restructuring, coupled with the discontinuation of overseas projects, signals a shift toward a leaner organization capable of navigating the fast‑paced AI and semiconductor landscape.
