Intel's Bold Steps: Workforce Cuts and Dividend Suspensions Amid Industry Challenges

Intel will cut over 15% of its workforce and suspend its dividend to turnaround its struggling manufacturing sector. CEO Pat Gelsinger aims to strengthen customer support and reduce costs by $10 billion by 2025. Analysts question the timeliness and sufficiency of these drastic measures amid stiff competition in AI chips.

Intel announced on Thursday that it would cut more than 15% of its workforce and suspend its dividend in the fourth quarter, aiming to turn around its loss-making manufacturing business.

The company also forecasted third-quarter revenue below estimates due to decreased spending on traditional data center semiconductors and a greater focus on AI chips, where it lags competitors.

Intel will reduce capital expenditure by more than $10 billion in 2025 and complete most job cuts by the end of 2024.