After Intel announced its first quarter earnings, it reported a reduction in operational and capital expenses in the coming months. The company was already reported to be laying off 20 percent workforce as part of a major restructuring.
In the first quarter earnings, the company reported a net loss of $800 million, or 19 cents per share, due to higher sales costs. To keep up with the market uncertainty, the company is looking to remove management layers in order to become more efficient under Lip-Bu Tan.
About the first quarter earnings, Tan seems satisfied, meanwhile, he is optimistic about the performance of the company in the year ahead. He said
“The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,”
Intel is expecting $17 billion in operational expenses in 2025, down from a previous target of $17.5 billion. Meanwhile, the company targets $18 billion in capital expenses in 2025, down from a previous target of $20 billion. Although Intel has not included restructuring charges in its guidance, David Zinsner, the chief financial officer of Intel, told CNBC that the reduction in operating expenses would include layoffs, especially managers, however, the company has not finalized the numbers. Tan is extending his hold on the company by making structural changes and making the sectional heads directly report to him. He has also promoted Sachin Katti as chief technology officer and artificial intelligence chief. Tan is currently focusing on AI domain. For that Intel’s data centre and AI chip group, along with the personal-computer chip group, were notified to report directly to him.
