Intel's Q1 earnings report falls short of expectations; announces layoffs starting in Q2.

Jin10 Data reported on April 25 that chip manufacturer Intel (INTC.O), which is trying to regroup, released a current fiscal quarter performance outlook that fell short of expectations and announced it would cut jobs to align its cost structure with its reduced business scale. This is the first financial report under the new CEO Chen Lifeng. The company stated in a statement on Thursday that it expects second-quarter revenue to be between $11.2 billion and $12.4 billion. This is far below the analysts’ average expectation of $12.9 billion, causing the stock to drop more than 6% in after-hours trading. Meanwhile, Intel indicated that the cost-cutting plan will include “eliminating management” to enable faster decision-making. Intel’s CEO stated that the company will begin layoffs in the second quarter. The company has not yet estimated the one-time expenses related to the layoffs, but it expects operating costs to be around $17 billion this year and to decrease to $16 billion by 2026. This week, media reports indicated that Intel plans to lay off over 20% of its workforce.