Intel to cut jobs and capex as Trump tariffs cloud outlook

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Intel plans to reduce its capital expenses and eliminate managers because the American chip maker draws a shift under the new CEO and displays with President Donald Trump’s war with China.

The company, which reduced 15,000 jobs in the second half of 2024, said on Thursday that its plan included “simplifying the organization, eliminating the layers of management and enabling decision -making faster.”

But Intel gave a more volatile evidence in the current quarter-where its shares are sent less in post-working hours-where they send the comprehensive tariffs to the Trump administration shocks by making semiconductors.

California -based chip and designer said he expects modified revenue of $ 11.2 billion to 12.4 billion dollars for the three months until the end of June, less than the expectations of analysts of $ 12.9 billion, according to Bloomberg estimates.

The shares decreased by more than 5 percent in trading after hours after the release.

The Intel profit report was the first since Lip-Bu Tan took over as CEO in March, after the Board of Directors overthrew Gelsiner in December.

The latest discounts follow months of the financial problems of The Chipmaker, which left TSMC in Taiwan in the race to manufacture semiconductors and struggled to open business building chips for competitors-a process began under Geelsiner.

The competitors also threatened its location in the Personal PC space as it failed to obtain a meaningful share from the AI ​​Data Center chips, where NVIDIA dominated.

Investors welcomed the appointment of Tan as a sign of a new strategic direction for the company. Last month, the promise of “cultural change” in Intel. He was affected by the discussion of any potential sale of the company’s losses, which some investors have requested.

After announcing the results, Tan revealed that the company reflected its course on its spinning arm in the investment capital, which was announced in January before its appointment.

He said: “We made a decision not to overcome Intel Capital, but work with the team to improve our current wallet,” adding that it will be “more selective in new investments.”

In an e -mail to Intel employees on Thursday, the new CEO, “The Unnecessary Bureaucracy”, said that was slowing the critical engineering efforts. “There is no way about the fact that these critical changes will reduce our workforce size,” Books.

He said that the cuts will start during the current quarter and move “as soon as possible” in the coming months.

Tan also said that the company will implement the policy of returning to work, which requires four days a week on the site by September 1.

Intel said it does not include restructuring fees for her guidance.

Over the course of 2025, Intel said it would review its previous goals of operating expenditures from 17.5 billion dollars to $ 17 billion, and reduced $ 2 billion from the previous Capex goal of $ 20 billion.

During the first three months of 2025, Intel reported a modified revenue of $ 12.7 billion, which is an apartment for a year, but above Wall Street unanimity estimates of $ 12.3 billion. Its net loss expanded to $ 821 million, from a loss of $ 381 million a year ago, but it was better than the analysts expected.

Trump has survived semiconductor and relevant products from his induction system in China. But they are subject to a review of national security that may lead to more customs tariffs and more disturbance of the supply chain with very complex global connectors.

Washington has cleared the exports of American companies from artificial intelligence chips to China, as it seeks to put pressure on Beijing and protect American technology.

Trump’s hostility to billions of dollars as support for chips, including Intel, TSMC and Samsung, agreed upon as part of the Joe Biden management, aims to re -make chips to the United States, also created uncertainty about the program.

At the time of the January profit report, INTEL received about $ 2.2 billion from $ 7.9 billion in federal grants allocated under the 2022 chips law.

Financial Director David Zixer said on Thursday that the net of Intel profit for 2025 will be between 8 billion dollars and 11 billion dollars, with the wide range resulting from “uncertainty about the time of the US government that meets its obligations in our chips agreement.”