Intel’s shares slid over 7% on Friday morning, following the chipmaker’s dismal financial outlook that dashed investor hopes for a corporate comeback. New CEO Lip-Bu Tan acknowledged there is no “quick fix” to Intel’s troubles and that the company will undergo several months of job cuts.
Tan announced organizational changes, including a return-to-office policy requiring employees to be on site four days a week, but provided little detail on how many positions will be eliminated. Investors had been expecting job cuts, but Tan said they are now “less meaningful” than anticipated.
The return-to-office mandate and uncertainty about the future have hit morale at Intel, particularly after 15,000 layoffs last year. The company is struggling to regain its technological leadership in manufacturing and artificial intelligence, with profit margins below rivals’.
Intel’s financial report showed a loss of $821 million on revenue of $12.7 billion, down 30% from 2021. The company’s shares have traded between $17.67 and $37.16 in the past year.
Tan plans to focus on reviving Intel’s engineering capabilities and reducing management layers, but did not provide a detailed plan for achieving this goal. Despite the challenges, Tan expressed his love for the company and commitment to turning it around.
In contrast to last year’s early retirements, Intel will offer buyouts to employees who choose to leave voluntarily, but will assess each department’s organization separately. The company is coping with uncertainty triggered by the Trump administration’s trade war, which could increase chip prices and reduce demand.
Source: https://www.oregonlive.com/silicon-forest/2025/04/intel-stock-slides-employees-fret-as-turnaround-prospects-dim.html