Intel warns against disappointing year – major savings on the way

Intel stands for a new chapter. With LIP-BU TAN at the helm as a brand new CEO, the company presented its first quarter figures on Thursday. Although the results exceeded expectations, investors were not exactly reassured. The prospects are weak and there is a substantial austerity round, including dismissals.

Results above expectations, prospect is disappointing

Tan takes over the baton in a difficult phase. Intel has been trying to gain ground for years to the competition, especially in the fast-growing market for AI chips where Nvidia is the leader with distance. The ambitions of Intel to play a greater role as a chip producer for third parties do not seem to be setting enough fruit.

For the first quarter Intel recorded a modified profit per share of 13 cents, considerably above the expected 1 cents. The turnover of $ 12.67 billion was also higher than the predicted 12.3 billion. Nevertheless, the share in the after -market trade fell, especially due to the disappointing expectations for the second quarter. Intel counts on $ 11.8 billion in turnover, where analysts aimed at 12.82 billion. The profit is expected to be zero.

CFO David Zincer points to the unpredictable world trade and stricter regulations as factors that obscure the insight into recovery. For example, export restrictions from the US in the direction of China ensure pressure on the international chip market. The uncertainty about China countermeasures also makes it difficult for companies to set out long -term strategies.

Costs down, jobs on the tour

Tan announced substantial cuts. The operational costs for 2025 are reduced to $ 17 billion, compared to an earlier prognosis of 17.5 billion. The investments are also limited, from 20 to 18 billion dollars. That will not remain without consequences for the staff. Management in particular must fear for his job, although it is still unclear how many functions are disappearing.

The reorganization starts this quarter. Employees were told on Thursday that a four -day working week at the office will be mandatory from September.

Intel’s new course focuses on artificial intelligence. The recent appointment from Sachin Katti to Chief Technology Officer and head AI underlines that focus. Katti is going to control Intel’s AI strategy and product development.

Intel stands for solid choices. The combination of cost savings, internal restructuring and a clear AI course must make the company relevant again in a market that changes rapidly. Tan knows that he has little time to show that that course is the right one.