COLUMBUS, Ohio (WCMH) – Intel debuted a streamlined company plan Thursday, including major cuts and a somewhat bleak outlook for the rest of the year.

Intel announced its first-quarter financial earnings on Thursday, the first glimpse into the company’s finances under CEO Lip-Bu Tan. The financial results examine efforts through March 29, and Tan was honest about some difficult decisions going forward. A plant under construction in New Albany, the largest private investment in Ohio’s history, received no attention in the Q1 report and company conference call, but the call offered insight into Intel’s changes in the near future.

Total revenue for the first quarter of this year was better than many expected at $12.7 billion, flat year over year and higher than Intel had anticipated. Intel’s operating expenses were down significantly, the first step toward an ambitious reduction in expenditures.

However, it anticipated lower revenue in the coming quarters due to tariffs and “uncertainty regarding timing of the U.S. government fulfilling their obligations in our CHIPS agreement,” the billions in federal funding set to help Ohio’s plant.

Rumors that Intel will cut 20% of its workforce have not been fully confirmed by the company, but Tan said significant layoffs are coming, especially among management. Tan is removing as much internal administrative work as he can, dramatically limiting meetings and internal processes. He said difficult decisions will begin in Q2 and will happen quickly. The rumored cuts are on top of the 15,000 employees who were laid off last year.

“I’m a big believer in the philosophy that the best leaders get the most done with the fewest people,” Tan said. “We will embrace this mindset across the company, which will include empowering our top talent to make decisions and take greater ownership of key priorities. There is no way around the fact that these critical changes will reduce the size of our workforce.”

Construction continues on Ohio’s $28 billion plant, which falls under Intel’s Foundry division. Among several worrisome years for Intel, the Foundry division has been hit particularly hard. Intel Foundry had its best quarter in more than a year in Q1, down less than 50% for the first time in five quarters. Foundry was still the company’s worst-performing division; however, it is up 7% from Q1 2024.

Also relevant to Ohio, Tan and Intel CFO David Zinsner voiced concerns about the promised $7.8 billion CHIPS Act funding from the federal government. Intel confirmed Thursday it had not received any new CHIPS Act funding, with the last payment occurring in January under former President Joe Biden.

Intel intends to sell off portions of its “non-core” divisions, as it already has with its Altera business. Tan is also asking all Intel employees to work at least four days per week in the office by Sept. 1. Already, he has adjusted leadership so more administrators report directly to him.

Intel’s earnings are further complicated by tariff tensions, with 145% tariffs on China in a trade war that complicates Intel’s manufacturing. Although President Donald Trump hinted on Wednesday that China and the U.S. are “actively” discussing an agreement, a Chinese foreign ministry spokesperson told NBC News that was far from the case.

Intel warned these tariffs and other geopolitical concerns are likely to lower profits for Q2, predicting revenue between $11.2 billion and $12.4 billion. Although they acknowledged tariffs may have helped boost Q1 sales, they were not optimistic about the role of tariffs going forward. Zinsner said they believe uncertainty in the economy with contribute to fewer sales and increase operating costs, and the company is bracing for a possible recession.

“It’s going to be hard. It will require painful decisions,” Tan said. “But we will make them knowing it’s what we must do to serve our customers better as we build a new Intel for the future – and I have great confidence in the power of our team and our people to make it happen.”