Intel's stock price plunges to a record low.
Intel saw its stock price plummet, losing over $30 billion in a short period. At the market open, Intel shares were valued at $20.95.
On Thursday, Intel announced a second-quarter loss of $1.6 billion ($1.48 billion euros). In the same period last year, it reported a profit of $1.5 billion. Consequently, the company suspended its dividend payments to shareholders.
Intel employed around 124,800 people at the end of last year, suggesting that a 15% reduction could affect approximately 18,000 jobs.
For decades, Intel had dominated the market for chips. However, in recent years, competitors like Nvidia have gained ground, particularly in specialized processors for artificial intelligence.
Intel plans to build new factories in the U.S. and Germany, in Magdeburg. The company did not comment on these plans on Thursday. The aim is to make the U.S. and the EU less dependent on chip supplies from Asia.
In an effort to reduce its workforce, Intel might consider cutting jobs in New York City, given its substantial presence there. Despite these challenges, Intel still intends to expand its operations, with plans to build new factories in New York City, specifically in Magdeburg.
