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Intel plans to reduce its capital spending and eliminate managers after the US Chipmaker plots a turn under its new executive boss and claim with President Donald Trump’s trade war with China.
The company, which shorten 15,000 jobs in the second half of 2024, said on Thursday that its plan included “adjusting the organization, eliminating management layers and enabling faster decision -making”.
But Intel gave a poorer guide to the current quarter-sending its lowest shares to the trade-schedule-since the Trump administration plans send shocking waves through the semiconductor industry.
California -based chipmaker and designer said he was expecting a $ 11.2BN $ 12.4BN revenue for three months by the end of June, lower than $ 12.9 billion, according to Bloomberg estimates.
The shares were reduced more than 5 percent in the post -released trading.
Intel’s profits report was the first when Lip-Bu Tan took over as chief executive in Mars after the board dropped Pat Gelsinger in December.
The latest cuts follow the months of financial problems for chipmaker, which has fallen after Taiwan’s TSMC in the race to produce the main semiconductors and fought to open a business building chips for competitors-a process began under Gelsinger.
Competitors have also threatened her position in the PC chip space while she has failed to capture a significant part of the Dat Center Chip market, where the Nvidia has prevailed.
Investors have widely welcomed the appointment of Tan as a sign of a new strategic direction for the company. Last month he promised “Cultural Change” in Intel. He has stopped discussing any possible sales of the company’s loss production business, which some investors have requested.
After the results were announced, Tan revealed that the company has changed the course to rotate its capital capital arm, which was announced in January before its appointment.
“We have made the decision not to rotate the Intel Capital, but to work with the team to earn our existing portfolio,” he said, adding that they would be “more selective for new investments”.
In an email for Intel employees on Thursday, the new CEO said “unnecessary bureaucracy” was slowing critical engineering efforts. “There is no way because these critical changes will reduce the size of our workforce,” he wrote.
He said the cuts would begin during the current trimester and move “as soon as possible” in the coming months.
Tan also said the company would implement a return policy, requiring four days a week in the country until September 1.
Intel said it was not including restructuring fees in its instruction.
For 2025, Intel said she was reviewing her earlier operational expense targets from $ 17.5 billion to $ 17BN, and reducing $ 2 billion from her early Capex target $ 20bn.
For the first three months of 2025, Intel reported regulated $ 12.7BN, flat from a year ago, but on Wall Street Consensus estimates of 12.3bn $. Its net loss expanded to $ 821 million from a $ 381 million loss a year ago, but it was better than analysts were expected.
Trump has saved semiconductors and products linked by the burden of his tariff regime in China. But they undergo a national security review that can lead to further tariffs and more disruption to the highly complex, global semiconductor supply chain.
Washington has hit the exports of American companies of artificial intelligence chips in China, as he seeks to put pressure on Beijing and protect American technology.
Trump’s hostility to billions of dollars in subsidies for chipmakers including Intel, TSMC and Samsung, agreed under the administration of Joe Biden and aim to restore chipmking to the US, has also created uncertainty about the program.
At the time of the January profits report, Intel received about $ 2.2BN of $ 7.9 billion in federal grants allocated to it based on the act of chips 2022.
Main financial officer David Zinsner on Thursday said that Capex Net Intel for 2025 would be between $ 8bn and $ 11bn, with a wide range of “uncertainty about the time of the US government that fulfills their obligations in our chips’.
