Intel (INTC) announces upcoming 15% staff cut

Intel (NASDAQ: INTC):

The Audit & Finance Committee (the "Audit Committee") of the board of directors (the “Board”) of Intel, in connection with the Company's management team, has approved an enterprise-wide initiative started in second quarter of 2025 to fundamentally transform our culture and the way in which we operate, which is designed to simplify the way we do business and drive transparency and accountability across the company which was communicated to employees on July 24, 2025. The Audit Committee approved the initiative on July 10, 2025. As part of this transformation, we implemented the 2025 Restructuring Plan to lower expenses, streamline our organizational structure and reduce management layers across functions while reallocating resources toward our core client and server businesses by reducing investment in lower-priority programs and initiatives. The Company expects these headcount reduction initiatives will reduce our core Intel workforce by 15% by the end of fiscal 2025. As a result of initiating and deploying the 2025 Restructuring Plan, the Company expects to recognize $1.9 billion of restructuring charges related to these actions, of which the Company is recognizing $1.8 billion in the second quarter of 2025. The restructuring actions, which are expected to be substantially complete by the fourth quarter of 2025 are primarily comprised of the following:

▪Headcount reductions: The Company is recognizing pre-tax employee severance and related employee exit charges of $1.4 billion in the second quarter of 2025, the substantial majority of which will be cash settled in future periods.

▪Business Exits and Real Estate Consolidations: The Company is recognizing non-cash asset impairment charges of $416 million in the second quarter of 2025, resulting from the exit of certain non-core lines of business and the consolidation and exit of certain real estate properties.

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