Latest news with #Lip-BuTan
Business Insider
5 days ago
- Business
- Business Insider
Intel (INTC) Investors Stay Torn Between Dead Money Doubts and Recovery Hopes
Intel's (INTC) stock has been stuck in the mud, trading at depressed, multi-year-low levels of around $22 today, all while the broader semiconductor industry is on fire, with names like NVIDIA (NVDA) and TSMC (TSM) soaring. Despite the stock appearing like a value play here, Intel's issues, such as fierce competition, a struggling foundry business, and macroeconomic headwinds, are weighing heavily. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. There are glimmers of hope, such as new AI products and cost-cutting efforts, but for now, the negatives overshadow any bullish case, making INTC a risky bet, even as a value play. Given the sorry state of affairs this stock finds itself in, I remain warily Neutral on INTC with a bearish bias. Why Intel's Stock Is Languishing Intel has been navigating a challenging period, and the bearish sentiment is far from unwarranted. AMD has steadily eroded its dominance in the CPU space, with Intel's server CPU market share falling to around 60% in 2024, down from over 80% a decade ago. Meanwhile, its foundry ambitions, aimed at rivaling TSMC, have become a financial drag. The division reported a staggering $7 billion loss on $18.9 billion in revenue in 2023, followed by another $4.3 billion in losses in 2024. The company's profit margin profile is also dismal, with gross margins at about 33% over the past 12 months, down from roughly 34%, 42%, and 45% in FY2024, FY2023, and FY2022, respectively. Geopolitical risks are another gut punch, as tariffs could further erode margin over the near to medium term. Some Reasons to Stay Hopeful Now, look, it's not all bad news. Intel's latest earnings displayed some resilience, with $12.7 billion in revenue topping estimates of $12.25 billion and adjusted EPS of $0.13, which surpassed forecasts of a break-even result. The Data Center and AI segment grew 8% year-over-year to $4.1 billion, a sign that Intel's AI pivot, including the Xeon 6 processor with a 1.9x performance leap for AI workloads and upcoming Panther Lake chips, is starting to click. Intel's also leaning into U.S. manufacturing, with $50 billion invested in domestic plants and $7.86 billion from the CHIPS Act, which could shine if U.S.-focused policies gain traction. Lip-Bu Tan, Intel's new CEO, is also bringing a fresh vibe, aiming to cut $500 million from 2025 operating expenses (down to $17 billion) and aiming for $16 billion in 2026. His push for a 'startup mindset' with less bureaucracy and more engineering could spark innovation. Intel's AI PC strategy is another potential win, with plans to ship 100 million AI PCs by year-end, assuming demand picks up. These are solid steps, but they need to deliver. Excessive Risk Suggests a Pass on INTC Despite a few encouraging signs, Intel is still falling behind in a semiconductor market that's otherwise surging. NVIDIA has a firm grip on the AI chip space, and TSMC's manufacturing edge is hard to beat. With NVIDIA's CUDA platform and Blackwell chips setting the tone, Intel's decision to outsource key products like Lunar Lake to TSMC only highlights how much ground it has to make up in its foundry ambitions. Losses are expected to persist until at least 2030, and Intel's Q2 2025 revenue guidance of $11.2-$12.4 billion fell short of the $12.82 billion consensus. Another outlook miss is likely in Q3, given macro risks, especially given the tariffs. Meanwhile, the stock's low price-to-sales ratio screams value (at 2x this year's expected sales). This is counterbalanced by a forward P/E of 78x on this year's expected earnings, which, again, reflects shaky earnings and high risk. Of course, the P/E falls to a more reasonable 29x on 2026's rebound potential to $0.80. Still, that's a high P/E ratio given the current risk Intel faces in the semiconductor landscape. Additionally, Intel's significant $28.6 billion net debt position further adds to the reasons to avoid the stock. Even if Intel manages to recover and generate noteworthy profits, it will be a while before investors see tangible capital returns, as management will likely prioritize deleveraging first. Is Intel a Buy, Sell, or Hold? Currently, analysts remain skeptical about INTC's investment case. The stock carries a Hold consensus rating, based on one Buy, 26 Holds, and four Sell ratings assigned over the past three months. Today, INTC's average stock price target of $21.60 implies roughly 5% downside potential over the next twelve months. In fact, the only bullish analyst on Wall Street is Gus Richard from Northland Securities, who expects INTC stock to hit $28 within 12 months. Intel: A Cheap Stock with a Pricey Set of Problems In short, Intel's story is one of potential buried under a mountain of problems. Yes, there are flickers of innovation and strategic pivoting, from AI PCs to domestic fabs, but execution risk remains sky-high. For every green shoot, there's a red flag, like underwhelming guidance, foundry losses, stiff competition, and debt that can't be ignored. At $22, the stock appears to be cheap, but cheap doesn't always mean it's investable. Until Intel proves it can consistently deliver on growth, profitability, and innovation, this remains a 'show-me' story in a market that rewards execution, not promises.
News18
5 days ago
- Business
- News18
Intel Layoffs: Company Announces Over 5,000 Job Cuts In US, Says Report
The layoffs are mainly likely to hit employees in California, Oregon, Arizona and Texas. Intel Layoffs 2025: In a fresh round of job cuts, chipmaker Intel is laying off over 5,000 employees in the US, Manufacturing Dive has reported citing updated Worker Adjustment and Retraining Notification filings. Mainly, the layoffs are likely to hit employees in California, Oregon, Arizona and Texas. The layoffs are part of a broader restructuring plan to turn around the beleaguered company. The job cuts are estimated to be doubled for Santa Clara and Folsom to a total of 1,935 affected employees, according to the California WARN filings. The layoffs started in Folsom and Santa on July 11 and July 15. 'We are taking steps to become a leaner, faster and more efficient company… Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution," Intel said in an email on July 9, according to Manufacturing Dive. Last month, Intel started job cuts and sacked 107 employees connected to its headquarters in Santa Clara, California. In a WARN notice, the company had said the layoffs are expected to begin July 15. Additionally, the company also decided to close down its automotive chip business, which was based in Munich, Germany, according to The Oregonian citing an internal memo. According to the memo, 'Intel plans to wind down the Intel architecture automotive business" and will lay off most of its workers in the section. Last month, reports citing CEO Lip-Bu Tan's internal memo suggested that Intel was planning to lay off 15%-20% workers from its chip manufacturing division. The move comes just a month after CEO Andy Jassy warned that adoption of generative AI tools would trigger a workforce reduction. The layoffs at Amazon come after similar action by global giants like Microsoft, Meta, and CrowdSrike recently. Many corporations are increasingly using artificial intelligence to write code for their software and adopting AI agents to automate routine tasks, as they look to save costs and cut reliance on people. CEO Lip-Bu Tan's Turnaround Plans Lip-Bu Tan, who assumed the role of Intel's CEO in March, said in April that the company plans to cut operating expenses by $500 million this year and another $1 billion next year. 'There is no way around the fact that these critical changes will reduce the size of our workforce," he had said. 'We must balance our reductions with the need to retain and recruit key talent," he said in the memo. 'I will empower each of my leaders to make the best possible decisions aligned with our top priorities. These decisions will not be made lightly, and we will keep you regularly informed." Tan has been working on sweeping reforms at Intel, including a revamp of its artificial intelligence (AI) roadmap and chip manufacturing operations. A key element of his plan involves trimming layers of middle management, which he sees as an impediment to faster execution and innovation. In a recent company-wide town hall, Tan cautioned employees that 'tough decisions" lay ahead. Tan, 65, previously served as CEO of Cadence Design Systems and was a member of Intel's board until August 2024. His appointment follows a challenging period for Intel, which reported a $19 billion annual loss in 2024 — its first in nearly four decades — and continues to lose market share to rivals like Nvidia and Arm, especially in the AI chip sector. Intel also announced mass layoffs in August last year. view comments Location : New Delhi, India, India First Published: July 19, 2025, 08:42 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
6 days ago
- Business
- Hans India
Intel Expands Layoffs to 5,000 Employees Amid Restructuring Push Under New CEO
Intel has officially increased its workforce reduction numbers, now confirming over 5,000 layoffs across the United States this week. The move, a part of the company's wider cost-cutting and restructuring initiative, comes under the leadership of newly appointed CEO Lip-Bu Tan. Earlier estimates had placed the number closer to 4,000, but updated WARN Act filings reveal a much larger impact, especially in key states such as Oregon and California. Oregon, where Intel is the largest private employer, will bear a significant portion of the layoffs. Reports now confirm that the number of job cuts in the state has jumped to 2,392 — nearly four times higher than the initial estimate. California is also facing a major reduction, with Intel reportedly doubling its planned cuts to 1,935 employees. Intel's Arizona operations will also be affected, with the company confirming 696 layoffs in that region. These figures, according to a Manufacturing Dive report, collectively push the total number of job losses across four states beyond 5,000. Despite its core businesses still generating revenue, Intel recently reported a quarterly loss of $1.6 billion. This financial setback, combined with increasing pressure from semiconductor competitors, appears to have prompted the aggressive cost-trimming strategy. The company's leadership has framed the layoffs as essential to simplifying operations and enhancing customer service. 'This restructuring is aimed at reducing organizational complexity and better serving customers,' Intel said in a statement. The cuts are widespread, impacting engineers involved in chip design, cloud software, and manufacturing. Several high-ranking executives — including a vice president of IT and multiple business unit heads — are reportedly among those affected. One of the hardest-hit areas is Intel's internal foundry division, where up to 20 percent of employees may lose their jobs, according to a memo cited by The Oregonian. In Oregon alone, the layoffs represent roughly 12 percent of Intel's local workforce, underscoring the scale of the changes underway. As with previous downsizing efforts, Intel is expected to offer some of the cuts through voluntary separation or early retirement programs. Affected employees will receive either a 60-day or four-week notice, along with nine weeks of pay and continued benefits. Intel CEO Lip-Bu Tan emphasized that the company is not only revising its structure but also reshaping its internal culture. 'Leadership will no longer be defined by the size of a person's team,' he said. Intel plans to prioritize smaller, high-performing teams going forward. In a bid to streamline further, some of Intel's marketing responsibilities will be outsourced to consulting giant Accenture, which is expected to leverage AI to manage parts of customer engagement. These latest job cuts follow a difficult 2024 for the chipmaker, when Intel eliminated 15,000 positions. Still, the company maintains that its current decisions were made after 'careful consideration' and pledged to treat affected employees 'with care and respect.'
Time of India
6 days ago
- Business
- Time of India
Intel confirms more than 5000 layoffs: How tech sector is shifting toward leaner, more strategic workforce models
Intel has confirmed that it will lay off more than 5,000 employees across the United States, marking a significant increase from its initial estimate of nearly 4,000. The company disclosed the updated figures in filings made under the Worker Adjustment and Retraining Notification (WARN) Act, according to Manufacturing Dive. These layoffs represent a fundamental shift in how technology companies are approaching workforce management, moving away from traditional large-scale operations towards more strategic, targeted team structures that prioritise efficiency over headcount. Job losses across key states The bulk of the job cuts are concentrated in Oregon and California, where Intel has increased its estimates substantially. In California, the company now plans to cut 1,935 jobs, more than doubling the original estimate. In Oregon, Intel, the state's largest private employer, is facing a fourfold increase in layoffs, now slated to affect 2,392 workers. Arizona, too, will see 696 layoffs, bringing the total confirmed job cuts across the four states to over 5,000. Restructuring under new leadership The layoffs exemplify a strategic shift under Intel's new CEO, Lip-Bu Tan, who is transforming the company's workforce philosophy towards a leaner, more strategic model. This approach reflects broader industry trends where technology companies are abandoning traditional employment structures in favour of smaller, more focused teams that can adapt quickly to market changes. Intel's decision to reduce organisational complexity demonstrates how the sector is reimagining workforce efficiency in an increasingly competitive landscape. In Oregon alone, the layoffs will impact about 12% of Intel's workforce in the state. The affected positions include engineers working in chip design, cloud software, and manufacturing, as well as several senior leaders, such as business heads and a vice president of IT. The company's internal foundry division, responsible for chip manufacturing, is expected to bear the brunt of the cuts, with up to 20% of its staff facing job losses, according to a leaked memo cited by local media. Voluntary exits and severance benefits In line with previous workforce reductions, the layoffs will primarily be offered as voluntary exits or early retirements. Employees impacted by the cuts will be given either a 60-day or four-week notice, along with severance packages that include nine weeks of pay and benefits. Intel emphasised that these decisions were made after "careful consideration" and that the company intends to treat those affected "with care and respect. " Cultural shift and outsourcing In addition to the workforce reductions, Intel is implementing a cultural transformation that embodies the new strategic workforce model. CEO Lip-Bu Tan announced in a company wide letter, that leadership will no longer be defined by the size of a person's team, marking a decisive break from traditional corporate hierarchies. Instead, Intel will prioritise smaller, high-performing teams that exemplify the leaner workforce approach now emerging across the technology sector. This shift towards strategic team composition over numerical strength represents a fundamental change in how tech companies are structuring their human resources. To further streamline operations, Intel is outsourcing some of its marketing functions to Accenture to manage customer communications. This move is part of Intel's broader effort to cut costs and increase operational flexibility as it adapts to the evolving tech landscape. Shift in employment strategies These layoffs follow a significant reduction in 2024, when Intel eliminated 15,000 positions, illustrating how the company is systematically transitioning to a leaner workforce model. As the tech industry continues to evolve, Intel's restructuring efforts reflect broader trends in how companies are fundamentally rethinking their employment strategies. The emphasis on strategic workforce planning over traditional large-scale hiring suggests that this leaner approach may become the new standard for technology companies seeking to remain competitive while maintaining operational agility. Tech sector adapting to a new reality Intel's decision to lay off over 5,000 employees represents a key moment in the technology sector's evolution towards leaner, more strategic workforce models. While painful for those affected, these cuts demonstrate how companies are moving away from traditional large-scale employment structures towards more targeted, efficient team compositions. As Intel continues to implement this strategic approach to workforce management, the broader tech industry is witnessing a fundamental shift in employment philosophy, one that prioritises strategic capability over numerical strength and operational agility over organisational size. This transformation suggests that the future of tech employment will be characterised by smaller, more specialised teams designed to deliver maximum impact with minimal resources. Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Time of India
6 days ago
- Business
- Time of India
Intel layoffs announced in July cross 5,000, numbers increase by 4 times in ...
Intel, the global semiconductor giant has announced a a wave of layoffs in July, with the total number of employees crossing the 5,000 mark. This wave of wave of layoffs will affect more than 5,000 employees in the US making it one the largest workforce reductions in the history of Intel. These layoffs are said to be part of the company's restructuring plan under the new CEO Lip-Bu Tan. The company aims to streamline operations and reverse deep financial losses with these job cuts. The layoffs comes at a time when Intel is trying to navigate through the challenging market environment and implement cost-cutting measures. Intel layoffs: The company to fire more than 5000 employees As reported by Manufacturing Dive, the Worker Adjustment and Retaining Notification (WARN) fillings reveals Intel's workforce in California and Oregon will be worst hit by this round of layoffs. The report also adds that apart from California and Oregon, employees in Arizona and Texas will also be impacted by the layoffs. The report adds that Intel has quadrupled its layoff count in Oregon and the company is now planning to cut 2,392 jobs, up four times from earlier estimates of around 500. On the other hand, California will witness 1,935 job losses. Whereas, in Arizona and Texas around 696 and several hundreds of employees will face jobs cuts. Intel layoffs: Employees in these departments will be affected Intel's July layoff wave will impact the engineers in the chip design, cloud software and manufacturing unit. Along with this, senior leaders including business heads and a VP of IT will also face the heat. Other than this, the back-office roles in HR, marketing and training will face job cuts. Lastly, the company will also be eliminating 20% workforce from the Intel's foundry division. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Intel says the layoffs are designed to 'remove organizational complexity' and empower smaller, high-performing teams. Some marketing functions will be outsourced to Accenture, which may use AI tools for customer communications. This move follows 15,000 job cuts in 2024, bringing Intel's total layoffs over the past year to more than 20,000. The report further adds that the affected employees will be soon given a notice. The workers will be given a period of four weeks and they will get the salaries and other benefits for nine more weeks. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
