Intel Corporation reported second-quarter 2025 financial results. “Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” said Lip-Bu Tan, Intel CEO. “We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. We are also taking the actions needed to build a more financially disciplined foundry. It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value.”
“Our results reflect solid demand across our business and good execution on our priorities,” said David Zinsner, Intel CFO. “The changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future.”
Intel continues to make progress to simplify its business, improve efficiency and enhance execution. These efforts are focused on reducing expenses, strengthening the balance sheet, optimizing the global footprint and concentrating resources on the most critical growth areas.
On track to achieve $17 billion non-GAAP operating expense1 target for 2025: Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15%. These changes are designed to create a faster-moving, flatter and more agile organization. As a result of these actions, the company recognized $1.9 billion in restructuring charges in the second quarter of 2025, which were excluded from its non-GAAP results. These charges impacted GAAP EPS by $(0.45) per share. Intel plans to end the year with a core workforce of about 75,000 employees as a result of workforce reductions and attrition.
Improving capital efficiency; driving to gross capital expenditures2 of $18 billion for 2025: Intel is taking action to optimize its manufacturing footprint and drive greater returns on invested capital. As part of this effort, Intel will no longer move forward with planned projects in Germany and Poland. The company also intends to consolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam and Malaysia. In addition, Intel will further slow the pace of construction in Ohio to ensure spending is aligned with market demand.
Intel also recognized approximately $800 million of non-cash impairment and accelerated depreciation charges related to excess tools with no identified re-use and approximately $200 million of one-time period costs in the second quarter of 2025. These charges reduced both GAAP and non-GAAP gross margin by approximately 800 basis points and GAAP and non-GAAP EPS by approximately $(0.23) and $(0.20) cents per share, respectively.
These restructuring charges and impairments were not incorporated into the guidance Intel provided for the second quarter of 2025.
