Intel is cutting more than 15 percent of jobs.
Intel once dominated the chip industry, now it's struggling with weak numbers. CEO Pat Gelsinger had previously reassured investors about the second half of this year, but the situation isn't improving much. Therefore, the company is resorting to a massive job cut.
The struggling semiconductor giant Intel is resorting to a significant reduction in its workforce. As part of a multi-billion dollar cost-cutting program, more than 15% of its approximately 125,000 jobs will be eliminated. Starting in the fourth quarter, Intel will also temporarily suspend its dividend payments, the U.S. company announced after the close of U.S. markets.
In the last quarter, Intel reported a loss of over $1.6 billion, compared to a profit of $1.48 billion in the same period last year. Revenue fell by one percent to $12.8 billion, missing analysts' expectations.
Intel once dominated the chip industry but has since fallen behind. Currently, Nvidia is leading the industry with chips for training AI software.
Intel CEO Pat Gelsinger aims to turn the company around with new production processes for more efficient chips, but he has a lot of work ahead. Gelsinger described the last quarter's business results as "disappointing." He also expects the second half of the year to be more challenging than previously anticipated.
Gelsinger had previously reassured investors that the second half of the year would bring improvement, but this caused Intel's stock to drop by more than 10 percent in after-hours trading.
Following the disappointing financial results for the last quarter, Intel's CEO, Pat Gelsinger, now admits that the second half of the year will be more challenging than initially anticipated. The following quarter, Intel is set to temporarily halt its dividend payments as part of a larger cost-cutting plan, involving a significant reduction in its workforce.
