Intel Beats Q2 Revenue Estimates, Cuts Foundry Spending, Cancels Global Projects

Intel reported a $2.9 billion loss for the second quarter of 2025, slightly improving revenue to $12.9 billion, which beat Wall Street expectations despite ongoing challenges. CEO Lip-Bu Tan emphasized a strategic pivot toward financial discipline, cutting back significantly on foundry investments and cancelling projects in Germany and Poland while slowing construction at its Ohio facility to align with market demand. The company completed about 15% workforce reductions, streamlining management layers to improve efficiency. While the foundry division posted a $3.17 billion operating loss, Intel is focusing on strengthening its core product portfolio and AI roadmap to enhance competitiveness and profitability. Despite positive revenue and guidance for the third quarter, Intel’s shares fell sharply due to investor concerns over the company’s future in chip manufacturing and the scale of restructuring charges. Tan acknowledged the tough early months of his tenure but remains optimistic about the long-term value creation from these strategic shifts.