Intel Plunges 6% After Forecasting Wider Q3 Losses and Slashing 22% of Workforce to 75,000

Intel (NASDAQ: INTC) shares slid nearly 6% in early trading Friday following a bleak earnings forecast and news of significant job cuts.

The chip giant revealed it expects Q3 losses to be wider than analysts had predicted. Alongside the disappointing outlook, Intel announced a sweeping workforce reduction aimed at trimming its headcount to 75,000 by year-end-a 22% drop from where it stood at the close of 2024. The company says this will be accomplished through attrition and other unspecified measures, signaling a major restructuring effort.

Intel's stock closed Thursday's session with a 3.66% loss at $22.63, and the after-hours dip pushed that decline even deeper as traders registered their displeasure. For a company with such a heavyweight position in the semiconductor world, this kind of guidance shake-up adds pressure amid a crowded field battling for AI and cloud computing chips.

The broader market was relatively calmer-while tech peers like NVIDIA (NASDAQ: NVDA) and Alphabet (NASDAQ: GOOGL) eked out modest gains, Intel's stumble stood out.

This move underlines Intel's ongoing battle to recalibrate after years of lagging behind rivals in process technology and manufacturing. Cutting nearly a quarter of its workforce isn't a small gesture; it's a clear indication that Intel is bracing for a rough patch ahead rather than a quick rebound.

It's worth noting that while the chip sector has been thriving in pockets thanks to AI demand, not every piece moves at the same pace. Intel still faces headwinds on multiple fronts, including intense competition and shifting customer priorities.

Whether this turn is just a painful consequence of repositioning or the start of a longer downturn remains an open question.