Intel Layoffs Deepen Amid Restructuring Efforts, Stock Volatility Persists

Intel Corporation (INTC) is undergoing a significant restructuring, marked by substantial workforce reductions and strategic shifts aimed at revitalizing the semiconductor giant. The company's stock price is reflecting the turbulence, experiencing heightened volatility as investors weigh the potential benefits of cost-cutting measures against near-term financial pressures.

Recent filings under the Worker Adjustment and Retraining Notification (WARN) Act reveal that Intel is cutting more than 500 positions in Oregon, specifically impacting facilities in Washington County including Aloha and Hillsboro. These layoffs, impacting roughly 529 employees on a permanent basis, are slated to begin on July 15, 2025.

This follows an earlier announcement of 107 layoffs at the company's Santa Clara, California headquarters, affecting roles spanning physical design engineering, system-on-chip logic design, product development, and cloud software.

These workforce reductions are part of a wider initiative to streamline operations and address affordability challenges. Sources indicate that Intel is targeting a 15%-20% reduction in its factory staff, aligning with the company's broader plan to cut over 20% of its workforce globally.

The strategic shift is being spearheaded by CEO Lip-Bu Tan, who assumed leadership in April 2025 with a mandate to revitalize the company. Tan is aiming to foster a more engineering-focused culture, restructure Intel's AI strategy, and refine its chip manufacturing methods. The layoffs primarily target what Tan has described as a bloated middle management layer, aiming to improve efficiency and reduce bureaucratic bottlenecks.

The financial backdrop to these restructuring efforts is challenging. Intel issued a weak forecast for its second-quarter 2025 revenue and profit, falling short of Wall Street expectations. The company projected revenue between $11.2 billion and $12.4 billion, below the consensus estimate of $12.82 billion.

Adjusted earnings were anticipated to be at break-even, a significant departure from the previously projected 6 cents per share. Concerns regarding U.S.-China tariffs have further clouded the company's outlook.

Despite these challenges, Intel's stock has shown resilience. By the middle of the trading day, Intel's stock price is trading at $23.63, up 7.41% on the day. Citi recently raised their price target on the stock from $21 to $24, with today's action moving Intel close to the new mark.