Intel, the American semiconductor giant, announced on Thursday that it will lay off more than 15% of its workforce by the end of the year as part of a significant cost-cutting initiative. This move is aimed at reducing the company’s expenses by $10 billion, according to a company statement. With approximately 125,000 employees at the end of 2023, the planned layoffs will affect around 18,000 people.
Struggling to keep up with competitors in the field of generative AI chips, Intel reported a net loss of $1.6 billion in the second quarter, a stark contrast to the $1.5 billion net profit recorded in the same period last year.
While the rest of the industry is heavily investing in advanced electronic components, Intel plans to cut its capital expenditures by more than 20% for the entire year, reducing the amount to between $25 billion and $27 billion.
In a further blow to investors, Intel also announced it would not be issuing a dividend at the end of the year.
Following this news, Intel’s stock plummeted, losing more than 19% in after-hours trading following the closure of the New York Stock Exchange.
