Intel recently released its fiscal 2025 Q1 earnings report, revealing revenues of $12.7 billion, an $800 million decrease compared to the previous year, with losses increasing to $400 million.

The report indicates that most revenue continues to be derived from client computing operations, totaling approximately $7.6 billion, though it is down 8% year-over-year. Another $4.1 billion in revenue came from the data center and AI business, which grew 8% compared to the same period last year. Intel Foundry contributed $4.7 billion in revenue, marking a 7% increase.

Regarding earlier market rumors of a potential 20% employee cut, CEO Pat Gelsinger stated that the company would significantly reduce management levels to streamline reporting processes for quicker decision-making, confirming that the internal workforce size would also be reduced. Gelsinger highlighted a fundamental shift in the company's operational culture and a restructuring of its complex organizational setup to create more space for new ideas and enhance operational efficiency. Adjustments are expected to be implemented as early as the second quarter of this year.