Xin Lang Cai Jing·2025-07-25 00:54Core Viewpoint - Intel is undergoing a significant workforce reduction, aiming to cut its employee count from approximately 109,800 to 75,000 by the end of the year, representing nearly a 15% reduction, in response to pressure on stock prices and profits [1][2] Group 1: Workforce Reduction - The workforce reduction includes layoffs and natural attrition, with management levels reduced by about 50% [1] - Since the beginning of 2025, Intel has laid off approximately 24,000 employees, including a recent announcement to cut up to 20% of its silicon manufacturing plant staff [2] Group 2: Financial Performance - In the second quarter, Intel reported revenue of $12.9 billion, a slight increase from $12.8 billion year-over-year, but incurred a net loss of $2.9 billion, which included $1.9 billion in restructuring costs [4] - The company’s client products revenue decreased by 3% to $7.9 billion, while data center and AI business revenue grew by 4% to $3.9 billion [4] - Intel's stock price fell by approximately 3%-4% in after-hours trading following the announcement of layoffs and the financial report [4] Group 3: Strategic Focus - CEO Chen emphasized that the restructuring is necessary to simplify the organizational structure, improve execution efficiency, and allocate more resources to future growth areas, particularly AI and foundry services [1] - Analysts suggest that while Intel's revenue growth is positive, the company still faces profit pressures and must rely on the development of AI and foundry businesses for long-term sustainability [4] - Industry observers believe that restructuring is essential for Intel's survival amid the rise of competitors like Nvidia in the AI chip market, although concerns remain about whether the layoffs will hinder future expansion potential [4]