In an effort to turn things around, Intel will sever 15% of its workforce and stop paying dividends.
In addition, it predicted revenue for the third quarter that was lower than expected by the market. This is because it is struggling to keep up with competitors as traditional data center semiconductor investment declines and shifts to AI chips.
Intel announced on Thursday that it will sever over 17,000 jobs, or more than 15% of its staff, and that it would stop paying out dividends beginning in the fourth quarter in an effort to turn around its manufacturing division, which is losing money.
In addition, it predicted revenue for the third quarter that was lower than expected by the market. This is because it is struggling to keep up with competitors as traditional data center semiconductor investment declines and shifts to AI chips.
In prolonged trading, Intel's shares fell 20%, causing the chipmaker to lose more than $24 billion in market value. Intel is situated in Santa Clara, California. Thursday's 7% decline in the shares coincided with a decline in American chip equities following Arm Holdings' cautious prediction on Wednesday.
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