Intel to cut 15% of workforce, reports quarterly guidance miss

Intel shares slid as much as 20% in extended trading on Thursday after the chipmaker said it would lay off over 15% of its employees as part of a $10 billion cost-reduction plan and reported lighter results than analysts had envisioned.

The company also said that it would not pay its dividend in the fiscal fourth quarter of 2024 and that it will lower full-year capital expenditures by over 20%.

Here's how the company did, compared to LSEG analyst estimates:

Intel's revenue declined 1% year over year in the fiscal second quarter, which ended on June 29, according to a statement. The company swung to a $1.61 billion net loss, or 38 cents per share, from a net income of $1.48 billion, or 35 cents per share, in the year-earlier period.

The company's Client Computing Group that makes PC chips contributed $7.41 billion in revenue, up 9% and right around the $7.42 billion consensus among analysts surveyed by StreetAccount. Intel said results tied to PC chips that can handle artificial intelligence workloads exceeded internal expectations and were on a path for over 40 million unit shipments in 2024.

Intel's Data Center and AI unit posted $3.05 billion in revenue. The result was down 3% and lower than the $3.14 billion StreetAccount consensus.

For the fiscal third quarter, Intel called for an adjusted net loss of 3 cents per share on $12.5 billion to $13.5 billion in revenue. LSEG analysts expected adjusted net earnings of 31 cents per share on $14.35 billion in revenue.

During the fiscal second quarter, Intel announced that Apollo would invest $11 billion in a joint venture around a chip manufacturing plant in Ireland. The company also introduced Xeon 6 server processors, along with a Gaudi 3 accelerator for AI tasks.

In addition,