Intel has released its second quarter earnings for 2025. It shows that the company’s revenue remained flat year-over-year at $12.9 billion. The company also reported significant GAAP earnings per share (EPS) loss of $0.67, with non-GAAP EPS loss of $0.10. It said that these losses were mainly influenced by substantial restructuring charges of $1.9 billion and impairment charges that totaled $800 million.
For the upcoming quarter, Intel isn’t being very optimistic, reporting that it predicts revenue to be between $12.6 billion and $13.6 billion, with an expected GAAP EPS of $0.24 and non-GAAP EPS of $0.00.
In its report, Intel committed to achieving its non-GAAP operating expense targets of $17 billion for 2025 and $16 billion for 2026 by improving execution and efficiency. Part of this plan will involve reducing the company’s core workforce by 15%; it said it wants to end the year with around 75,000 employees, meaning it has a current workforce of around 88,235 right now. That means around 13,235 jobs are due to be cut this year.
The company is highly likely to go after managerial jobs, as it said it wants to create a more agile and flatter organization. When Intel says flatter, it means that those at the bottom of the hierarchy report to higher ups and the people in the middle of the hierarchy are sacked. Its restructuring efforts have so far cost the company $1.9 billion in charges during the second quarter.
Intel is also optimizing its manufacturing operations in a bid to improve capital efficiency, seeking to address $18 billion in gross capital expenditures for 2025. Notably, it will be canceling planned projects in Germany and Poland. The firm also said assembly and test operations in Costa Rica will be consolidated into larger sites in Vietnam and Malaysia. There’s also bad news for America as the company is going to slow the pace of construction in Ohio to match market demand.
Performance across Intel’s business units was mixed in Q2 2025. For example, the Client Computing Group (CCG) revenue fell by 3% to $7.9 billion while the Data Center and AI (DCAI) revenue saw a 4% increase, reaching $3.9 billion. Intel Foundry revenue increased by 3% to $4.4 billion.
This year, the company has launched its new Intel Xeon 6 series CPUs, with the 6776P processor being used in NVIDIA DGX B300. It said it’s planning the first Panther Lake processor SKU to ship later this year and Intel 18A has reached a key milestone with the start of production wafers in Arizona. The company also said it generated approximately $922 million from a secondary offering of Mobileye shares.