The Intel stock is experiencing a massive plunge after the semiconductor giant announced disappointing quarterly figures and drastic cost-cutting measures. The stock price dropped by more than 20% in pre-market trading, marking the largest single-day loss in over two decades. This development reflects the profound crisis the company is facing and has repercussions for the entire technology sector.
Profound Restructuring at Intel
Intel plans to lay off about 15% of its workforce, affecting around 15,000 jobs. Additionally, the dividend payment will be suspended starting from the fourth quarter of 2024. These measures are part of a comprehensive cost-cutting program aimed at restoring the chipmaker’s competitiveness and returning to profitability. The 1% decline in revenue to $12.8 billion in the second quarter and a projected net loss of €1.5 billion underscore the urgency of this restructuring.
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