Intel on Thursday posted quarterly revenue that topped market expectations, saying it has cut about 15 percent of its workforce to be “more agile.”
The US chip maker also said it “will no longer move forward” with projects in Germany and Poland as part of a push to save billions of dollars.
The struggling chip maker’s earnings report came as rivals specializing in graphics processing units (GPUs) for artificial intelligence thrive due to rapid adoption of the technology.
Intel is one of Silicon Valley’s most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia as the world’s preeminent AI chip provider.
Intel’s niche has been in chips used in traditional computing processes, steadily being eclipsed by the AI revolution.
Intel reported $12.9 billion in sales in the recently ended quarter, topping forecasts, but logged a $2.9 billion loss that included $1.9 billion in restructuring charges.
“Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent,” the company said in an earnings release.
“These changes are designed to create a faster-moving, flatter and more agile organization.”
Intel shares were down slightly in after-hours trades that followed the release of the earnings figures.
Intel chief executive Lip-Bu Tan took the helm in March, announcing layoffs as White House tariffs and export restrictions muddied the market.
Malaysia-born tech industry veteran Tan has said it “won’t be easy” to overcome challenges faced by the company.
