The CEO of Intel Lip Bu Tan says bold steps to revive Chipmaker, the bureaucracy says “Intel (Nasdaq: INC), advanced fine devices (NASDAQ: AMD)
Intel company Intc CEO Tan lip He takes measures to revive the faltering chips maker, announcing the major organizational changes only for five weeks in his term.
What happenedTAN simplifies the Intel driving structure, which requires hybrid employees to work four days in the office starting from the third quarter of 2025, and imposing strict costs in costs, as shown in the company’s first profit call. Currently, hybrid employees are expected to spend about three days a week on the site.
Tan said: “The organizational complexity and bureaucracies suffocate innovation and the lightness that we need to win.” “Decisions take a long time.”
The chips maker plans to reduce operating expenses to $ 17 billion in 2025 and 16 billion dollars in 2026, while reducing the goal of capital spending for 2025 from 20 billion dollars to $ 18 billion. Intel focuses on using current assets better before adhering to the new spending.
The company announced revenues in the first quarter of $ 12.67 billion, exceeding the expectations of analysts of $ 12.3 billion, with modified profits of 13 cents per share exceeding 1 cents expected. However, Intel expects the second quarter revenues between $ 11.2 billion and 12.4 billion dollars, less than 12.84 billion dollars.
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Interestingly, the American -Chinese trade war has strengthened the demand for the chips of the older generation in Intel. Everyone who directs their bets said. Michelle Johnston HolthusThe chief product official in Intel.
The company also redefines its product portfolio with the “first action burden approach” to emerging artificial intelligence applications, including thinking and edge computing models.
Tan urged Patience from investors. “It is clear that there are no quick reforms,” he said, while stakeholders encourage our “commitment” to future developments.
Price work: The shares of Intel Corp increased by 4.37 % on Thursday to close at 21.49 dollars, but they decreased 5.12 % in the hours after trading hours to $ 20.39. A year until now, the stock gained 6.28 %.
Benzinga Edge shares Give the company a modest growth degree of 3.61 %. How do you measure semiconductor giants like Nvidia and AMD? Click here for full comparison.
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