Intel's Q3 2024 earnings report

Intel to Cut Over 15% of Workforce, Suspend Dividend in $10 Billion Cost-Cutting Plan

Aug 1, 2024, 08:06 PM

Intel Corporation, based in Santa Clara, has announced plans to cut more than 15% of its workforce, which equates to approximately 17,500 employees, as part of a $10 billion cost-reduction strategy. The layoffs are aimed at addressing the company's earnings slump, market share losses, and to finance a recovery effort. Additionally, Intel will suspend its dividend starting in the fourth quarter of 2024. The announcement follows Intel's disappointing Q2 2024 earnings report, which revealed a revenue of $12.83 billion, missing the estimated $12.94 billion, and an adjusted earnings per share (EPS) of $0.02, falling short of the expected $0.10. The company also forecasted third-quarter revenue to be between $12.5 billion and $13.5 billion, below analysts' expectations of $14.38 billion. Intel also reported a loss of $1.6 billion in Q2 2024 due to its Foundry business and investments, and is dealing with an ongoing CPU scandal. Following the announcement, Intel's stock fell more than 13% in after-hours trading.