Intel Reports Flat Revenues and Deep Cuts to Employees, Manufacturing

Intel reported a net loss of $2.9 billion on revenues of $12.8 billion in the quarter ending June 30, 2025. Worse, the company expects to let go of 15 percent more of its workforce with the goal of ending the year with 75,000 employees. And it is canceling, consolidating, or slowing down various manufacturing projects around the world.

“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” Intel CEO Lip-Bu Tan said. “We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. We are also taking the actions needed to build a more financially disciplined foundry. It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value.”

Intel also sees a reasonably positive short-term bump: It predicted that it would see stronger-than-expected revenues in the current quarter thanks to small gains in chips for PCs tied to the end of support for Windows 10 in October.

As for the previous quarter, Intel’s Client Computing Group, which makes PC chips, reported revenues of $7.9 billion, a decline of 3 percent year-over-year (YOY). And its Data Center and AI Group posted a gain of 4 percent YOY to $3.9 billion in revenues. Intel said that these two core businesses were seeing “durable demand.”

The Intel Foundry business saw revenues of $4.4 billion, up 3 percent YOY, and Intel says it is making steady progress on its 18A manufacturing process, with production wafers now being built in Arizona. And the company’s All Other group–Altera and its Mobileye holdings–reported revenues of $1.1 billion, up 20 percent YOY.

Intel now plans to eliminate a total of 24,000 jobs in calendar year 2025, a figure that includes previous layoffs. With a planned employee count of 75,000 by the end of 2025, Intel should be about 25 percent small overall.

Regarding its manufacturing capabilities, Intel is scaling back around the world. It has canceled planned fabrication projects in Germany and Poland, further slowed the pace of the construction of its new Ohio fabs, and will consolidate its Costa Rican assembly and test operations into larger sites in Vietnam and Malaysia.

Between the job cuts and manufacturing streamlining, Intel expects to save about $17 billion over the full year.

Looking to the end of the year, Intel says that its Panther Lake processor family is on track for release in 2025, with additional versions in 2026. Nova Lake is likewise on track for late 2026, Intel said.