Intel has reported its second quarter earnings for 2025, revealing a flat revenue of $12.9 billion compared to the same period last year. The company faced a significant loss in its Generally Accepted Accounting Principles (GAAP) earnings per share (EPS), which stood at a loss of $0.67. In non-GAAP terms, the EPS loss was $0.10. These financial setbacks were largely attributed to substantial restructuring charges amounting to $1.9 billion and impairment charges totaling $800 million.
Looking ahead, Intel’s outlook for the upcoming quarter remains cautious. The company predicts revenue to range between $12.6 billion and $13.6 billion, with an expected GAAP EPS of $0.24 and a non-GAAP EPS of $0.00. In an effort to stabilize its finances, Intel has committed to achieving its non-GAAP operating expense target of $17 billion for 2025 and $16 billion for 2026. The plan includes a significant reduction in its workforce by 15%, with the goal of concluding the year with around 75,000 employees, down from its current workforce of approximately 88,235. This translates to about 13,235 job cuts, with a focus on managerial positions to create a more agile organizational structure.
In addition to job cuts, Intel is optimizing its manufacturing operations to enhance capital efficiency. The company is addressing its projected $18 billion in gross capital expenditures for 2025, which includes canceling planned projects in Germany and Poland. Furthermore, assembly and test operations in Costa Rica will be consolidated into larger facilities in Vietnam and Malaysia. Notably, Intel is also slowing the pace of construction in Ohio to align with market demand.
Performance across Intel’s various business units revealed mixed results in Q2 2025. The Client Computing Group (CCG) experienced a revenue decline of 3%, totaling $7.9 billion. Conversely, revenue from the Data Center and AI (DCAI) segment increased by 4%, reaching $3.9 billion. Additionally, Intel Foundry revenue rose by 3% to $4.4 billion. The company is also preparing for the launch of its first Panther Lake processor SKU later this year and has achieved a key milestone with the start of production wafers for Intel 18A in Arizona.
In a move to bolster its financial standing, Intel generated approximately $922 million from a secondary offering of Mobileye shares. As the company navigates these challenges, it remains focused on restructuring efforts and optimizing operations to enhance its competitive position in a rapidly evolving market.
