Intel Announces Major Layoffs After $2.9 Billion Q2 Loss Amid Competitive Struggles.
Chipmaker to Cut 15% of Workforce as Stock Performance Lags Behind Nvidia and AMD
Santa Clara, CA, July 30, 2025 — Semiconductor giant Intel Corp. has announced plans to slash 15% of its global workforce following a disappointing second-quarter performance that saw the company report a staggering $2.9 billion loss. The drastic move is part of CEO Lip-Bu Tan’s broader strategy to rein in costs and stabilize the company’s finances.
The job cuts will reduce Intel’s headcount to approximately 75,000 by the end of the year, down more than 20% from the end of June. According to Chief Financial Officer Dave Zinsner, further reductions could come via attrition and divestitures of underperforming business units.
Intel’s second-quarter revenue came in at $12.9 billion, slightly ahead of Bloomberg analysts’ projections of $11.9 billion but flat compared to the same period last year. Despite the revenue beat, profitability missed expectations, and Intel offered only a break-even outlook for Q3, falling short of Wall Street’s projected 4-cent gain per share.
In a post-earnings call, Tan criticized his predecessor Pat Gelsinger’s capital-intensive expansion strategy, labeling some investments as “excessive and unwise.” He confirmed the cancellation of certain factory projects and vowed a more conservative approach to future spending. However, analysts noted a lack of clarity in Tan’s long-term roadmap to regain Intel’s technological edge.
Shares of Intel tumbled 8.53% in the previous trading session to $20.70, reflecting investor unease over the company’s weak performance, large-scale layoffs, and vague future vision. The stock saw a slight rebound of 0.50% in pre-market trading on July 28.
Intel has significantly underperformed in the chip sector this year. Its stock is up just 2% in 2025, compared to Nvidia’s 30% surge and AMD’s 34% gain. Despite the lag, Intel trades at a surprisingly high 12-month forward price-to-earnings (P/E) ratio of 42.55, above Nvidia’s 33.90 and AMD’s 32.12, according to Reuters.
Technical analysts, including Anshul Jain of Lakshmishree Investments, note that Intel’s stock remains stuck in a wide trading band of $18.50 to $26.50 over the past 50 weeks. The recent earnings report failed to trigger any significant breakout, and market sentiment remains cautious.
What This Means for Investors
Investors are advised to tread carefully. While the restructuring may eventually strengthen Intel’s balance sheet, the lack of a compelling strategy for regaining market leadership — especially in the rapidly growing AI segment — is a cause for concern. Short-term volatility is likely to persist, and analysts suggest watching closely for execution on cost-cutting measures and any signs of renewed technological competitiveness.
