Official announcements from Intel or credible financial news sources

Intel to Lay Off 15%, Suspend Dividend Amid Earnings Miss, Stock Drops 13%

Aug 1, 2024, 08:10 PM

Intel has announced significant cost-cutting measures, including laying off more than 15% of its workforce and suspending dividend payments starting in the fourth quarter of 2024. The company reported disappointing second-quarter earnings, with adjusted earnings per share (EPS) of $0.02, missing the estimated $0.10, and revenue of $12.83 billion, slightly below the forecasted $12.95 billion. Intel's GAAP EPS was $(0.38). The company's stock plummeted over 13% in after-hours trading following the news, bringing its market cap to $124.51 billion. Intel also provided a bleak third-quarter outlook, with revenue expected to range between $12.5 billion and $13.5 billion, significantly below analysts' estimates of $14.38 billion. Intel's CEO stated that the cost-reduction plan aims to save over $10 billion by 2025 through structural and operating realignments, including headcount reductions and cuts in operating expenses and capital expenditures.