Intel's Restructuring Efforts Boost Stock Amid Layoffs and Potential Deals

Intel's stock surged 7% as the chipmaker plans to lay off 529 workers in Oregon, part of its restructuring plan. Despite this, the stock has lost nearly a third of its value over the past 12 months. The cuts are part of a larger effort to trim over 100 roles in California and potentially sell parts of its business under new CEO Lip-Bu Tan.

Intel Corp.'s stock surged 7% on July 8, 2025, as the chipmaker announced plans to lay off 529 workers in Oregon, part of its broader restructuring plan under new CEO Lip-Bu Tan. This move is part of a larger effort to trim over 100 roles in California and potentially sell parts of its business, aiming to streamline operations and boost efficiency [1].

The layoffs are expected to eliminate about 529 employees on a permanent basis, impacting facilities in Aloha and Hillsboro starting on July 15 [1]. This follows an earlier announcement in California, where 107 employees were let go at Intel’s Santa Clara headquarters. The layoffs are part of a plan to slash jobs and reduce complexity, as Intel seeks to sharpen its competitive edge in the fast-changing semiconductor market [2].

Under Tan's leadership, Intel has embarked on a plan to simplify internal operations, "empower engineers," and "better serve customer needs," according to internal communications [2]. The restructuring aims to cut bureaucracy and speed up product development, which is crucial in a market that demands constant innovation.

Despite the job cuts, Intel's stock has lost nearly a third of its value over the past 12 months. The stock's 52-week range is between $17.67 and $37.16, and it currently trades at $23.29, up 1.29 points or approximately 5.86% from the previous close [2]. The stock's recent price surge was accompanied by high trading volume, reflecting increased investor interest and possible short-term momentum.

Investor sentiment was lifted by Citigroup raising its price target on Intel to $24, citing cautious optimism around the company’s transformation plans under its new CEO [2]. Analysts remain mixed in their sentiment, with Citigroup maintaining a Hold rating and other analysts echoing a similar tone. The consensus reflects ongoing concern about Intel’s ability to compete with industry leaders like AMD and Nvidia while undergoing internal changes [2].

Intel's most recent earnings report for the quarter ending March 29, 2025, showed $12.67 billion in revenue and a GAAP net loss of $821 million, highlighting the financial pressure the company faces during this period of transition [2]. The upcoming Q2 earnings release on July 24 will be crucial for investors, who will be looking for cost savings from the layoffs and restructuring, signs of margin improvement, and updates on Intel’s progress in catching up in the chip manufacturing space [2].

References:
[1] https://news.bloomberglaw.com/daily-labor-report/intel-cuts-over-500-jobs-in-oregon-as-part-of-layoff-plan-1
[2] https://m.economictimes.com/news/international/us/intel-on-fire-shares-surge-5-top-factors-fueling-the-rally/articleshow/122324455.cms