Intel’s stock jumped early in 2025 as optimism built around new leadership, but shares fell over 9% after Thursday’s Q2 earnings and layoff announcement, threatening to erase

Intel CEO Lip-Bu Tan announces 15% job cuts and cancels expansion plans as the company refocuses on core products, cost control, and execution.

Intel is planning to separate its networking and communications unit into a stand-alone company and has begun the process of identifying investors, the chipmaker said on Friday, as new CEO Lip-Bu Tan looks to streamline its operations.

The chipmaker plans to reduce headcount from 96,400 to 75,000 employees amid restructuring and steeper Q3 losses.

Back in April, Intel Corp.’s newly appointed Chief Executive Officer Lip-Bu Tan told investors on his inaugural earnings call that turning around the troubled chipmaker would take time.

Intel is going to end the year with a workforce that is over a fifth smaller than last year, it said on Thursday, and new CEO Lip Bu Tan presented a blueprint for a more cost-disciplined, streamlined chipmaker that would issue "no more blank checks.

Despite layoffs, Intel appears to remain committed to its ongoing site expansion in Arizona as it retreats from other planned projects.

I’m also instituting a policy. Every major chip design needs to be personally reviewed and approved by me before tape out. He says it’ll move Intel “back towards a first time right mindset,” and that he’s already “taken steps to correct past mistakes regarding multi-threading capabilities” in future chips.

Intel Corp. will have cut 25% of its global workforce by the end of the year as the California-based company’s top executive continues efforts to turn around operations and reduce expenses.

Intel is set to report its sixth consecutive net loss on July 24, while revenue is expected to drop for a fifth straight quarter.