Intel's Q1 financial report falls short of expectations, announces layoffs to start in the second quarter.

Chip maker Intel, attempting to revive its fortunes, has announced lower-than-expected earnings outlook for the current quarter and plans to reduce costs and business scales through layoffs. This is the first financial report since the new CEO, Chen Liwu, took office. In a statement on Thursday, the company said it expects revenue for the second quarter to be between $11.2 billion and $12.4 billion. This is significantly lower than analysts' average expectation of $12.9 billion, causing the stock to drop more than 6% after hours. Meanwhile, Intel stated that the cost-cutting plan will include the "elimination of management layers" to enable faster decision-making. The CEO of Intel stated that the company will begin layoffs in the second quarter. The company has not yet estimated the one-time expenses related to layoffs, but it is expected that operating costs will decrease to around $17 billion this year and to $16 billion by 2026. Reports this week suggested that Intel plans to lay off more than 20% of its workforce.