Intel Plunges After Hours: CFO Announces Layoffs & Cost Cuts

Intel shares experienced a significant decline in after-hours trading due to the company reporting a larger loss than expected. The Chief Financial Officer, David Zinsner, attributed the poor second-quarter results to challenges in gross margin related to Intel's AI PC product and increased costs.

As part of a $10 billion cost-savings plan, Intel plans to lay off 15% of its workforce by 2024 and make significant cuts to research and development, marketing, and administrative spending. Additionally, the company announced the suspension of its dividend starting in the fourth quarter in an effort to improve profitability and strengthen its balance sheet.

The company's third-quarter revenue forecast fell below analysts' expectations, further contributing to the negative market response, with Intel's shares dropping over 19% in extended trading.