In the first quarter of 2025, Intel achieved revenue of $12.7 billion, flat year-over-year; a gross margin of 36.9%, down 4.1 percentage points year-over-year; and a net loss of $400 million, a year-over-year decrease of 115%, with a loss per share of $0.19, down 111% year-over-year.
Specifically, the CCG (Client Computing Group) revenue was $7.6 billion, down 8% year-over-year; DCAI (Data Center and AI) revenue was $4.1 billion, up 8% year-over-year; and Intel Foundry revenue was $4.7 billion, up 7% year-over-year.
Intel expects second-quarter revenue of $11.2-12.4 billion, a gross margin of 34.3%, and a loss per share of $0.32; 2025 operating expenses are projected at $17 billion, and $16 billion for 2026.
It is reported that in 2024, Intel’s net loss reached $18.8 billion (approximately RMB 137 billion), and the company also announced the layoff of 15,000 employees last year.
Intel’s stock price has cumulatively fallen by nearly 43% in the past 12 months.
Following the earnings release, Intel’s new CEO, Pat Gelsinger (陈立武), issued an internal email to all employees, stating that revenue, gross margin, and earnings per share all exceeded expected guidance, marking a step in the right direction.
Gelsinger emphasized: “All change will begin with reshaping our culture. Whether it’s customer feedback or internal voices, the problems everyone sees are very consistent: we are too slow, too complex, and stuck in our ways – this needs to change.”
He said: “I firmly believe in the principle that the best leaders accomplish the most with the fewest people. We will adopt this mindset throughout the company, which includes empowering our top talent with decision-making authority and better focusing on key priorities. These key changes will reduce the size of our workforce.”
In the letter, Gelsinger proposed four areas of change to shape a new Intel: a company with an engineering culture at its core, a flatter organizational structure, optimized processes, and a return to the office.
Gelsinger pointed out that some teams within Intel have eight or even more layers of management, creating redundant processes that slow down efficiency. Therefore, he has asked his executive leadership team to re-examine their respective organizational structures, focusing on reducing layers, expanding management spans, and empowering high-performing talent.
Gelsinger said: “Our competitors are streamlined, agile, and flexible, and we must be the same to improve execution.”
Gelsinger also specifically mentioned KPI performance evaluation indicators, which are highly valued by managers, stating that the current situation will no longer exist:
The original “Insights” and “OKR system” will be adjusted to non-mandatory requirements; unnecessary meetings will be canceled, and the number of attendees will be significantly reduced; top talent will be given more decision-making authority and will take greater responsibility for key strategic priorities.
Intel has also updated its office policy, requiring all employees to work on-site four days a week starting September 1st – currently, under the hybrid work model, employees spend approximately three days a week working in the office, but implementation has not been ideal.
Gelsinger concluded by saying that Intel was once recognized as the most innovative company in the world. As long as it actively embraces change, there is no reason why it cannot return to its peak.
In addition, according to media reports, following the layoff of 15,000 employees (15% of the total workforce) in August 2024, Intel’s new round of layoffs will affect approximately 22,000 employees (another estimate is close to 20,000), representing over 20% of the workforce.
Non-core product lines will also be completely cut to concentrate resources on high-profit businesses.
The financial streamlining plan is even more stringent: a cumulative reduction of $1.5 billion in operating expenses over the next two years, with the 2025 budget reduced to $17 billion and further decreased to $16 billion in 2026, the largest drop in history.
However, Intel has not officially disclosed the latest layoff situation.
As of the end of 2024, Intel had a total of 108,900 employees worldwide.