Intel shares plummeted by 5.8% on Friday during early trading in Frankfurt following the company’s warning of significantly larger-than-expected losses in the third quarter. This sharp decline in investor confidence came alongside Intel’s announcement of a major workforce reduction as it moves to reshape its business amid challenging market conditions.
On Thursday, Intel closed the regular U.S. trading session 3.66% lower at $22.63 per share. The combined drops over two consecutive days signal growing concern among shareholders about the company’s near-term profitability and long-term strategic direction.
Intel Targets Major Headcount Reduction
To control costs and stabilize its financial position, Intel revealed plans to cut its workforce to 75,000 employees by the end of 2025. This reduction marks a 22% decrease compared to its total employee count at the end of 2024. The company stated that it will implement these cuts through natural attrition and “other means,” which may include layoffs and reassignments.
Although Intel has not provided specific figures regarding the number of jobs that will be lost in each business division, the company emphasized that the restructuring will help improve operational efficiency and allow for greater investment in critical growth areas, such as semiconductor innovation and artificial intelligence.
Financial Outlook Falls Short of Wall Street Expectations
In its latest financial forecast, Intel disclosed that it expects steeper losses in the third quarter than analysts had previously projected. While the company did not offer precise guidance numbers, this gloomy outlook has further shaken investor confidence.
Notably, Intel’s struggles come at a time when competitors such as AMD and NVIDIA continue to gain market share in both
