Intel Corporation (INTC) Stock: Shares Surge 7% on Cost-Cutting and Layoff Plan

TLDR

Intel stock jumped 7.23% to $23.59 following layoff news from its Oregon fabrication hub

Company is cutting 500 jobs as part of a global 20% workforce reduction plan

Intel’s Q1 2025 chip market share fell to 65.3%, its lowest level since 2002

Cost-cutting aims to improve efficiency, but competitive pressure from AMD and Arm continues

Long-term investor confidence remains mixed, despite short-term rally

Intel Corporation (NASDAQ: INTC) saw its stock surge 7.23% to close at $23.59 on July 8, 2025, after the company revealed its latest workforce reduction strategy.

Intel Corporation (INTC)

The move involves laying off 500 employees at its key Oregon fabrication facility, aligning with a broader plan to reduce its global workforce by 20%. Investors welcomed the aggressive cost-cutting initiative, even as Intel continues to grapple with declining market share.

Oregon Layoffs Signal Deeper Restructuring

Intel confirmed that 500 workers at its Oregon hub will be laid off as part of a long-term strategy to reduce costs and improve operational efficiency. The Oregon site is one of Intel’s most important semiconductor fabrication facilities. The layoffs are expected to contribute to a leaner organizational structure and, according to Intel, will empower engineers and remove internal complexity.

A company statement noted the goal was to “make Intel a leaner, faster, and more efficient company.” While the layoffs represent only a fraction of Intel’s global headcount, they mark a significant operational pivot as Intel attempts to streamline amid intense industry competition.

Market Share Continues to Slip

Despite the positive market reaction, Intel’s underlying business challenges remain pressing. According to recent Citi research, Intel’s chip market share fell to 65.3% in Q1 2025 — its lowest level in over two decades. This decline reflects ongoing competitive pressure from AMD and Arm Holdings, both of which have made significant inroads in high-performance and energy-efficient computing.

Intel’s years-long struggle to maintain leadership in chip manufacturing is being compounded by delays in next-gen technology rollouts and rising costs across global supply chains. Cost-cutting may improve the company’s near-term margins but won’t automatically resolve its competitive disadvantages.

Performance Overview and Long-Term Outlook

The market responded favorably to Intel’s decisive action, with shares gaining 7.23% in a single session. Year-to-date, INTC is up 17.66%, outperforming the S&P 500’s 5.85% return. However, longer-term metrics remain troubling. The stock has declined 30.16% over the past year and over 54% across five years, highlighting a steep drop in investor confidence.

Intel’s three-year return of -34.08% also lags far behind the S&P 500’s 59.65%. Despite a recent rebound, the company remains in the red over multi-year horizons.

Investor Sentiment Mixed Despite Rally

Though Intel’s bold cost-cutting plan has sparked a short-term rally, some analysts remain skeptical. The Motley Fool recently excluded Intel from its latest list of top 10 stock picks, citing stronger growth potential elsewhere.

While job cuts may help boost profitability in the short term, regaining technological leadership and reversing market share erosion will be key to Intel’s long-term viability. Investors will be watching closely for signs of improved execution and innovation in the quarters ahead.

The post Intel Corporation (INTC) Stock: Shares Surge 7% on Cost-Cutting and Layoff Plan appeared first on CoinCentral.

Crypto Pulpit