Intel, which just finished one of the most challenging years in its history, stated that it anticipates a more than 6% decline in revenue in the first half of 2025. The company attributed its challenging forecast to a sluggish demand from its core customers, rising competition, and an uncertain global economy.
Chief Financial Officer David Zinsner stated, “We will continue to be extremely focused on execution in order to build on our progress and unlock value.” He is one of two executives serving as Intel’s temporary leader as the company looks for a replacement for Pat Gelsinger, who announced his sudden retirement last month.
Intel did not provide any information on its long-term plan or CEO search on Thursday. According to executives, Intel may divide the corporation in two, dividing its manufacturing division from its chip design division. However, it has not provided a timeline for its decision or the appointment of Intel’s permanent CEO.
Competing chipmakers and designers, who had more sophisticated processors better suited for the quickly expanding artificial intelligence business, put the corporation under a lot of pressure. The business is counting on the release of a new microprocessor class termed 18A in the second half of the year.
Intel is hopeful that 18A will allow them to create more sophisticated processors and entice other semiconductor designers to work with Intel to produce their own chips.
Michelle Johnston Holthaus, Intel’s other interim CEO and head of its chip design division, stated that the company is in a better position to meet the needs of its customers thanks to its increased focus on expanding and streamlining its product range and ongoing advancements on its process roadmap.
However, Intel must first recover from its operational and financial mess.
Sales for the corporation last year came to $53 billion, the lowest amount since 2013 and a 2% decrease from 2023. The $19 billion Intel lost was inflated by accounting fees and expenses related to the 15,000 jobs that were cut last October.
Intel stated that it anticipates first-quarter sales of $11.2 billion, a 7% decrease from the same time last year.
With 20,000 plant technicians, engineers, scientists, and corporate staff spread throughout its facilities in Washington County, the chipmaker employs more Oregonians than any other company.
Last year, Intel cut 1,300 jobs in Oregon, attrition, and buyouts, totaling 3,000 workers.
As the company’s competitive position weakened last year, its shares lost over half of their value. In Thursday’s after-hours trade, shares increased slightly, going up 1.2% to $20.25.
–Mike Rogoway writes on the business and technology in Oregon. You can reach him at 503-294-7699 or atmrogoway@oregonian.com.
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