Intel cuts back spending, workforce as struggling chip maker mounts comeback

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By BARBARA ORTUTAY

Intel Corp. is shedding thousands of workers and cutting expenses as its new CEO works to revive the fortunes of the struggling chipmaker that helped launch Silicon Valley but has fallen behind rivals like Nvidia Corp. and Advanced Micro Devices Inc.

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In a memo to employees Thursday, CEO Lip-Bu Tan said Intel plans to end the year with 75,000 “core” workers excluding subsidiaries, through layoffs and attrition. That’s down from 99,500 core employees at the end of last year. The company previously announced a 15% workforce reduction.

“I know the past few months have not been easy. We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company,” Tan wrote.

In addition, Intel will scrap previously planned projects in Germany and Poland and also move assembly and test operations in Costa Rica to larger sites in Vietnam and Malaysia. Costa Rica will remain a “home to key engineering teams and corporate functions,” Tan said in the memo.

In the U.S., the company said it will “further” slow construction of a semiconductor plant in Ohio.

Founded in 1968 at the start of the PC revolution, Intel missed the technological shift to mobile computing triggered by Apple’s 2007 release of the iPhone, and it’s lagged more nimble chipmakers. Intel’s troubles have been magnified since the advent of artificial intelligence — a booming field where the chips made by once-smaller rival Nvidia have become tech’s hottest commodity.

The Santa Clara, California-based company’s market cap was $98.71 billion as of the market close on Thursday, compared with Nvidia’s $4.24 trillion.

Tan said Intel is focusing on its “core product portfolio” and artificial intelligence offerings to better serve customers.

“There are no more blank checks,” Tan wrote. “Every investment must make economic sense.”

For the second quarter, Intel reported a loss of $2.9 billion, or 67 cents per share, down from a loss of $1.6 billion, or 38 cents per share, a year earlier. Excluding one-time items, the company posted a loss of 10 cents a share.

Revenue was flat at $12.9 billion. Analysts, on average, were expecting adjusted earnings of 1 cent per share on revenue of $12 billion, according to a poll by FactSet.

FACT FOCUS: Trump claims cashless bail increases crime, but data is inconclusive

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BY MELISSA GOLDIN

As his administration faces mounting pressure to release Justice Department files related the Jeffrey Epstein sex trafficking case, President Donald Trump is highlighting a different criminal justice issue — cashless bail.

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He suggested in a Truth Social post this week that eliminating cash bail as a condition of pretrial release from jail has led to rising crime in U.S. cities that have enacted these reforms. However, studies have shown no clear link.

Here’s a closer look at the facts.

TRUMP: “Crime in American Cities started to significantly rise when they went to CASHLESS BAIL. The WORST criminals are flooding our streets and endangering even our great law enforcement officers. It is a complete disaster, and must be ended, IMMEDIATELY!”

THE FACTS: Data has not determined the impact of cashless bail on crime rates. But experts say it is incorrect to claim that there is an adverse connection.

“I don’t know of any valid studies corroborating the President’s claim and would love to know what the Administration offers in support,” said Kellen Funk, a professor at Columbia Law School who studies pretrial procedure and bail bonding. “In my professional judgment I’d call the claim demonstrably false and inflammatory.”

Jeff Clayton, executive director of the American Bail Coalition, the main lobbying arm of the cash bail industry, also pointed to a lack of evidence.

“Studies are inconclusive in terms of whether bail reforms have had an impact on overall crime numbers,” he said. “This is due to pretrial crime being a small subset of overall crime. It is also difficult to categorize reforms as being ‘cashless’ or not, i.e., policies where preventative detention is introduced as an alternative to being held on bail.”

Different jurisdictions, different laws

In 2023, Illinois became the first state to completely eliminate cash bail when the state Supreme Court upheld the constitutionality of the law abolishing it. The move was part of an expansive criminal justice overhaul adopted in 2021 known as the SAFE-T Act. Under the change, a judge decides whether to release the defendant prior to their trial, weighing factors such as their criminal charges, if they could pose any danger to others and if they are considered a flight risk.

Loyola University of Chicago’s Center for Criminal Justice published a 2024 report on Illinois’ new cashless bail policy, one year after it went into effect. It acknowledges that there is not yet enough data to know what impact the law has had on crime, but that crime in Illinois did not increase after its implementation. Violent and property crime declined in some counties.

A number of other jurisdictions, including New Jersey, New Mexico and Washington, D.C., have nearly eliminated cash bail or limited its use. Many include exceptions for high-level crimes.

Proponents of eliminating cash bail describe it as a penalty on poverty, suggesting that the wealthy can pay their way out of jail to await trial while those with fewer financial resources have to sit it out behind bars. Critics have argued that bail is a time-honored way to ensure defendants released from jail show up for court proceedings. They warn that violent criminals will be released pending trial, giving them license to commit other crimes.

A lack of consensus

Studies have shown mixed results regarding the impact of cashless bail on crime. Many focus on the recidivism of individual defendants rather than overall crime rates.

A 2024 report published by the Brennan Center for Justice saw “no statistically significant relationship” between bail reform and crime rates. It looked at crime rate data from 2015 through 2021 for 33 cities across the U.S., 22 of which had instituted some type of bail reform. Researchers used a statistical method to determine if crime rates had diverged in those with reforms and those without.

Ames Grawert, the report’s co-author and senior counsel in the Brennan Center’s Justice Program, said this conclusion “holds true for trends in crime overall or specifically violent crime.”

Similarly, a 2023 paper published in the American Economic Journal found no evidence that cash bail helps ensure defendants will show up in court or prevents crime among those who are released while awaiting trial. The paper evaluated the impact of a 2018 policy instituted by the Philadelphia’s district attorney that instructed prosecutors not to set bail for certain offenses.

A 2019 court decree in Harris County, Texas, requires most people charged with a misdemeanor to be released without bail while awaiting trial. The latest report from the monitoring team responsible for tracking the impact of this decision, released in 2024, notes that the number of people arrested for misdemeanors has declined by more than 15% since 2015. The number of those rearrested within one year has similarly declined, with rearrest rates remaining stable in recent years.

Asked what data Trump was using to support his claim, the White House pointed to a 2022 report from the district attorney’s office in Yolo County, California, that looked at how a temporary cashless bail system implemented across the state to prevent COVID-19 outbreaks in courts and jails impacted recidivism. It found that out of 595 individuals released between April 2020 and May 2021 under this system, 70.6% were arrested again after they were released. A little more than half were rearrested more than once.

A more recent paper, published in February by the IZA Institute of Labor Economics, also explored the effects of California’s decision to suspend most bail during the COVID-19 pandemic. It reports that implementation of this policy “caused notable increases in both the likelihood and number of rearrests within 30 days.” However, a return to cash bail did not impact the number of rearrests for any type of offense. The paper acknowledges that other factors, such as societal disruption from the pandemic, could have contributed to the initial increase.

Many contributing factors

It is difficult to pinpoint specific explanations for why crime rises and falls.

The American Bail Coalition’s Clayton noted that other policies that have had a negative impact on crime, implemented concurrently with bail reforms, make it “difficult to isolate or elevate one or more causes over the others.”

Paul Heaton, a law professor at the University of Pennsylvania who studies criminal justice interventions, had a similar outlook.

“Certainly there are some policy levers that people look at — the size of the police force and certain policies around sentencing,” he said. “But there’s a lot of variation in crime that I think even criminologists don’t necessarily fully understand.”

Find AP Fact Checks here: https://apnews.com/APFactCheck.

What Happened This Week in NYC Housing? July 18, 2025

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Each Friday, City Limits rounds up the latest news on housing, land use and homelessness. Catch up on what you might have missed here.

A proposal up for a vote this fall would speed up approvals for affordable housing in neighborhoods that have produced the least over the last five years. Here’s where the rule would apply if it went into effect today. (Patrick Spauster/City Limits)

Welcome to “What Happened This Week in NYC Housing?” where we compile the latest local news about housing, land use and homelessness.

Know of a story we should include in next Friday’s roundup? Email us.

ICYMI, from City Limits:

Among the ballot proposals New Yorkers will be asked to vote on this fall: A measure to accelerate affordable housing production in the parts of the city that have produced the least, which has drawn criticism from councilmembers and community boards. City Limits crunched the numbers to see which neighborhoods would be subject to the “fast track” rule if it took effect today.

Among the usually moderate public housing voters who helped power Eric Adams to the mayoralty, Zohran Mamdani outperformed expectations in last month’s Democratic primary. Here how every NYCHA-adjacent election district voted in first-round ballots.

Catch the latest episode of the “Hear Our Voices” podcast, which shares stories and resources related to family homelessness.

“Mitchell-Lama was one of New York’s most successful projects, and the time has come for us to do it again,” write New York City Assemblymembers Harvey Epstein and Grace Lee.

ICYMI, from other local newsrooms:

Did Mayor Adams really build more housing than the Bloomberg and de Blasio administrations combined? The Real Deal fact-checks the claim. (Subscription required)

A long-shuttered former hospital in Forest Hills will be converted to 144 apartments for low-income seniors, Gothamist reports.

The task force charged with voting on a controversial plan to develop a swath of the Red Hook waterfront around the Brooklyn Marine Terminal delayed its decision for the fifth time, according to The City.

New York State plans to slash a program that helps low- and moderate-income homeowners lower their energy usage and costs, New York Focus reports.

The post What Happened This Week in NYC Housing? July 18, 2025 appeared first on City Limits.

State Sen. Nicole Mitchell resigns from office after felony convictions

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State Sen. Nicole Mitchell resigned from office Friday after her conviction last week on two felony burglary charges. Her departure comes just a few days after she announced her intent to leave office by Aug. 4.

Mitchell, a first-term Democratic-Farmer-Labor lawmaker from Woodbury, was arrested in April 2024 after breaking into her estranged stepmother’s Detroit Lakes home. She remained in office for 15 months after her arrest as Republicans and even some Democrats called for her to resign.

Some Senate DFLers argued Mitchell was entitled to due process in her criminal case and that she should remain in office until her trial was complete. Sen. Majority Leader Erin Murphy, DFL-St. Paul said Mitchell told colleagues she would resign if found guilty. On Friday, Mitchell followed through.

“I am resigning my seat in the Minnesota Senate for District 47,” she wrote in a letter to Gov. Tim Walz. “Thank you to my family, friends, and constituents who shared with me the issues they cared about and trusted me to work on their behalf. It has been a true honor to serve the state of Minnesota and the community I grew up in.”

The governor now can call a special election to fill Mitchell’s seat. The outcome could affect the balance of power in the Senate, where DFLers hold a narrow majority. The makeup of the Senate stands at 33 Democrats and 32 Republicans following Mitchell’s resignation and the death of Sen. Bruce Anderson, R-Buffalo, this week.

So far, two DFL candidates have stepped up to run in District 47 — Reps. Amanda Hemmingsen-Jaeger and Ethan Cha, both of Woodbury. No Republican had announced as of Friday afternoon.

Earlier this week, Mitchell’s defense attorney said the senator would resign by Aug. 4. Her remaining time in office would be used to wrap up legislative projects, complete constituent services, transition legislative staff and obtain health insurance for her son, the law firm Ringstrom DeKrey said in a news release.

Mitchell is a former broadcast meteorologist and held the rank of lieutenant colonel in the Air National Guard. She was elected in 2022 and was in the third year of her four-year term.

On July 18, a Becker County jury found Mitchell guilty of first-degree burglary and possession of burglary tools — both felonies. Mitchell claimed she was checking on her stepmother, who has Alzheimer’s disease. Police said she told them she broke in to retrieve her father’s ashes and other sentimental items.

Mitchell’s sentencing is scheduled for Sept. 10 in Detroit Lakes. The mandatory minimum sentence for first-degree burglary is six months in jail or a workhouse.

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