Intel's Q2 financial results remain flat, European manufacturing project abandoned

 

Intel released its second-quarter 2025 financial report on Thursday (July 24), reporting revenue of $12.9 billion, unchanged from the same period last year, and a loss of $2.9 billion, up from $1.6 billion in the same period last year. On the same day, CEO Chen Liwu said that he is pushing forward with a restructuring plan to lay off about 15% of the workforce and announced the cancellation of manufacturing projects originally planned in Germany and Poland.

Of the $12.9 billion in revenue, the Client Computing Group (CCG) accounted for $7.9 billion, the Data Center and AI Group (DCAI) accounted for $3.9 billion, and Intel Foundry chip foundry services accounted for $4.4 billion. However, inter-departmental transaction offsets also reached $4.4 billion, indicating that chip foundry revenue primarily comes from internal product departments, with limited external orders. Notably, Intel's revenue in the second quarter of 2020 reached as high as $19.7 billion, reflecting a significant decline in revenue in recent years.

Intel released its second-quarter 2025 financial report on Thursday (July 24), reporting revenue of US$12.9 billion, unchanged from the same period last year, and a loss of US$2.9 billion, up from US$1.6 billion in the same period last year. On the same day, CEO Chen Liwu announced a restructuring plan to lay off approximately 15% of the workforce and canceled previously planned manufacturing projects in Germany and Poland.

Chen Liwu, who took over as CEO in March this year, had previously hinted at organizational downsizing during the first-quarter earnings call, though the scale was not disclosed at the time. This time, he explicitly stated that the layoffs would amount to 15%, with most completed in the second quarter, and that the management team had been reduced by approximately half, aiming to reduce the global workforce to 75,000 by year-end.

Intel also conducted a round of layoffs last year, affecting approximately 15% of its workforce. As of the end of 2024, the company had a total of 109,800 employees, with approximately 99,500 being core full-time staff.

Intel had originally planned to invest approximately 3 billion euros in establishing an advanced chip factory in Magdeburg, Germany, and constructing assembly and testing facilities in Poland. However, these two projects were put on hold in 2024 due to excessive investment and unclear demand. Chen Liwu has now officially announced their cancellation, indicating that Intel is shifting toward a more financially disciplined capital expenditure strategy.

Looking ahead, Intel will fully implement its return-to-office policy in September and adjust production capacity based on customer demand, focusing on the Intel 18A process node, which is expected to enter mass production by year-end. Additionally, the company will advance innovations in its x86 product line, streamline chip design processes, and reorganize its AI strategy, prioritizing emerging applications such as inference and agent-based AI.

On the day of the earnings report, Intel's stock price dropped 3.98% in after-hours trading, falling to $21.73.