Intel Shares Jump Pre-Market on Planned 20% Job Cuts, Eyes Q1 Earnings

Intel (NASDAQ:INTC) stock climbed over 2.5% in pre-market trading Wednesday after reports surfaced that under new CEO Lip-Bu Tan, the company will cut more than 20% of its workforce to streamline operations. Investors are now focused on Thursday's Q1 earnings call for further details on Tan's turnaround plan.

Premarket Reaction

• Stock Move: +2.5% pre-market

• Driver: Bloomberg report of a 20% headcount reduction aimed at trimming bureaucracy and boosting engineering focus.

Tan's Streamlining Strategy

• Leadership Overhaul: Chip divisions now report directly to Tan, flattening management layers.

• Engineering Emphasis: Shift from middle-management to an engineering-first culture, signaling renewed R&D and product development focus.

• Global Footprint: Ireland's €17 b facility—Intel's largest outside the U.S.—will be critical to capacity and cost rationalization.

Scope of Workforce Cuts

• Magnitude: Over 20% of ~109,000 employees, following last August's 15% reduction (~15,000 jobs).

• Cost Goals: Part of a broader drive to save $10 billion in expenses and refocus capital on AI and next-gen node development.

Q1 Earnings in Focus

• Date: Thursday (May 2) after market close

• Key Metrics:

  • Revenue and margin trends amid cost-cutting

  • Updates on AI chipset strategy vs. rivals (e.g., NVIDIA)

  • Capital expenditure outlook and fab utilization rates

What Investors Should Watch

1. Q1 Financial Statements: Look for detailed breakdowns of restructuring charges and R&D spend.

2. Management Commentary: Clarity on Tan's vision for AI, foundry growth, and process-tech roadmaps.

3. Regulatory Filings: Upcoming 10-Q and 8-K filings will disclose the formal layoff plan and any material impacts.

To track Intel's latest SEC disclosures—such as the Q1 10-Q and any 8-K notices on workforce changes—use the
🔗 SEC Filings - Securities and Exchange Commission (S.E.C.) API.
This API delivers real-time access to company filings, ensuring you don't miss critical material events.