Chipmaker Intel Corp. said it's cutting 15% of its massive workforce as it tries to turn its business around to compete with more successful rivals like Nvidia and AMD. The Santa Clara, California-based company said Thursday it is also suspending its stock dividend as part of a broader plan to cut costs. The bulk of the layoffs will be completed this year, the AP reports. Intel reported a loss for its second quarter along with a small revenue decline, and it forecast third-quarter revenues below Wall Street's expectations. Intel had 124,800 employees as of the end of 2023, according to a regulatory filing. Based on that, the number of jobs it plans to cut would be more than 18,500.
The company posted a loss of $1.6 billion, or 38 cents per share, in the April-June period. That's down from a profit of $1.5 billion, or 35 cents per share, a year earlier. Adjusted earnings excluding special items were 2 cents per share. Revenue slid 1% to $12.8 billion from $12.9 billion. Analysts, on average, were expecting earnings of 10 cents per share on revenue of $12.9 billion, according to a poll by FactSet. "Intel's announcement of a significant cost-cutting plan including layoffs may bolster its near-term financials, but this move alone is insufficient to redefine its position in the evolving chip market," said eMarketer analyst Jacob Bourne. "The company faces a critical juncture as it leverages US investment in domestic manufacturing and the surging global demand for AI chips to establish itself in chip fabrication."
(More
Intel stories.)
,
uBlock 
,
and
Ghostery 
)
