By Max A. Cherney, Arsheeya Bajwa, Stephen Nellis
(Reuters) -Intel provides for the second quarter income below the estimates of Wall Street Thursday, throwing a shadow on the first winning round of the new CEO Lip-Bu Tan at the bar, in the context of a unleashed Sino-Us trade war.
Intel shares fell 4.2% of prolonged exchanges.
Dour’s prospects could be another source of pessimism for investors who count on tanning to transform the flea manufacturer after years of missteps that it has trouble taking foot in the booming AI market.
The company based in Santa Clara, California, provides for a turnover of $ 11.2 billion to 12.4 billion dollars for the June quarter, compared to the average estimate of analysts of $ 12.82 billion, according to data compiled by LSEG.
The fears around the prices prompted customers to store Intel fleas, which increased sales in the first quarter, said financial director David Zinsner. The company has not been able to determine the amount of the advantage and it expects the second quarter to suffer accordingly.
“Our advice this quarter, in the second quarter, reflect this uncertainty caused by the prices,” said the finance chief.
In the midst of Tan attempts to rationalize the company and reduce costs, Intel also said that it reduced its operating expense target adjusted to around $ 17 billion in 2025, against its previously indicated objective of $ 17.5 billion, and now aims at $ 16 billion in 2026.
“There is a lot of intel bureaucracy that has been built over time,” Zinsner told Reuters. “He wants to cut all of this to make engineers more successful and allow them to bring out products more quickly. We have to go through all of this.”
Tan told investors at a conference call that Intel examined its factory footprint. The company said in February that it was postponing a 28 billion dollar factory project in Ohio until 2030.
“We will continue to take a closer look at our existing factory footprint to make sure that we are making the most effective use of our store capacity before engaging in additional expenses,” said Tan on Thursday.
The financial director Zinsner said that the possible impact of restructuring plans on the number of heads of employees was still uncertain, but that clarity would emerge when the company will report the results of the second quarter.
In a memo to the employees published publicly before his first conference call with analysts as CEO, Tan wrote that layoffs would begin in the second quarter and that such changes would focus on reducing the company’s internal bureaucracy. Tan also plans to reduce the number and size of internal meetings.
