Intel's shares took a dramatic dive after the company reported a larger-than-expected loss for the second quarter. The news sent shockwaves through the tech industry.
Intel's second-quarter loss amounted to $1.6 billion, a sharp downturn from the previous year's profit. Revenue also fell short of expectations.
Intel's CFO, David Zinsner, attributed the poor performance to several factors, including challenges with the AI PC product and higher-than-normal costs.
To cut costs and improve profitability, Intel announced plans to lay off 15% of its workforce. This drastic measure is part of a $10 billion cost-saving plan.
In addition to layoffs, Intel is suspending its dividend starting in the fourth quarter. This move aims to preserve cash and strengthen the company's financial position.
Intel is slashing spending in various areas, including research and development, marketing, and general administration. The goal is to reduce expenses by $20 billion in 2024.
Following the earnings report, Intel's stock price plunged over 19% in after-hours trading, reflecting investor concerns about the company's future.