Intel Corp (NASDAQ:INTC) stock fell 9.08% (As on July 25, 11:55:31 AM UTC-4, Source: Google Finance) after the company reported second-quarter results that beat Wall Street expectations on revenue, as the company’s new CEO Lip-Bu Tan announced significant cuts in chip factory construction. For the second quarter, Intel reported a net loss of $2.9 billion, or 67 cents per share, compared with a $1.61 billion net loss, or 38 cents per share, in the year-earlier period. Earnings per share were not comparable to analyst estimates due to an $800 million impairment charge related to excess tools with no identified re-use. The company’s client computing group, which is primarily comprised of sales of central processors for PCs, had $7.9 billion in sales, down 3% on an annual basis. Revenue in the data center group, which includes some AI chips but is mostly central processors for servers, rose 4% to $3.9 billion. Intel said its foundry business had an operating loss of $3.17 billion on $4.4 billion in revenue.

Meanwhile, CEO Lip-Bu Tan had promised to make the chipmaker’s products competitive again, and to reduce bureaucracy and layers of management, including slashing staff in Oregon and California. In a memo to employees the company had “completed the majority” of its planned layoffs, amounting to 15% of the workforce, and that it plans to end the year with 75,000 employees. Intel previously said it was trying to reduce operating expenses by $17 billion in 2025. Tan also announced several other spending cuts in the memo, particularly in the company’s costly foundry division, which makes chips for other companies and is still looking for a big customer to anchor the business. Further, Tan said that Intel had cancelled planned fab projects in Germany and Poland, and will consolidate its testing and assembly operations in Vietnam and Malaysia.

INTC in the second quarter of FY25 has reported the adjusted loss per share of 10 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue growth of 35.9 percent to $12.86 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $11.92 billion.

Intel said it expects revenue for the third-quarter of $13.1 billion at the midpoint of its range, versus the average analyst estimate of $12.65 billion. The chipmaker said that it expects to break even on earnings while analysts were looking for earnings of 4 cents per share.