Intel Stock Plunges on Wider-Than-Expected Loss, Layoffs To Cut Costs

Intel (INTC) shares plunged successful extended trading Thursday aft nan institution posted a wider-than-expected nonaccomplishment and said it would laic disconnected 15% of its workforce arsenic portion of a $10 cardinal cost-savings plan.

The chipmaker missed expectations connected its top and bottommost lines, swinging to a second-quarter nonaccomplishment of $1.6 cardinal from a profit of $1.5 cardinal a twelvemonth earlier. Revenue of $12.8 cardinal was down 1% year-over-year.

“Second-quarter results were impacted by gross separator headwinds from nan accelerated ramp of our AI PC product, higher than emblematic charges related to non-core businesses and nan effect from unused capacity,” CFO David Zinsner said.

Intel said it expects third-quarter gross of $12.5 cardinal to $13.5 billion, good beneath nan $14.3 cardinal analysts had been expecting. It projected a nonaccomplishment of 24 cents per share, while analysts had expected a profit of 3 cents. 

$10 Billion Plan To Lower Costs Includes Layoffs

In bid to bring down costs, Intel said it would trim its headcount by 15% by nan extremity of 2024. Other cost-saving measures see lowering its investigation and improvement (R&D); marketing; and wide and administrative spending to $20 cardinal successful 2024, pinch further cuts successful 2025 and 2026.

The institution besides said it would suspend its dividend starting successful nan 4th quarter. 

“By implementing our spending reductions, we are taking proactive steps to amended our profits and fortify our equilibrium sheet," Zinsner said.

Shares of Intel were down complete 19% astatine $23.47 per stock successful extended trading arsenic of 6:30 p.m. ET Thursday pursuing nan company's net release.