Intel shares fell by 20% on Thursday, August 1, as a result of information about the financial performance of the company in the second quarter of 2024, which turned out to be worse than preliminary expectations, and the consequence of the statement by the management of the firm about its intention to lay off more than 15% of employees as part of the implementation of a plan to reduce costs by $10 billion.

The revenue of the mentioned brand, whose head office is located in Santa Clara, California, for April-June of the current year was fixed at $12.83 billion. This indicator fell by 1% compared to the result for the same period in 2023. The LSEG consensus forecast provided that the company’s revenue for April-June of the current year would amount to $12.94 billion.

Intel’s net loss for the last quarter was $1.61 billion. This result stands in stark contrast to the net income of $1.48 billion for April-June 2023.

Adjusted earnings per share were fixed at 2 centers. The LSEG consensus forecast called for this figure to be 10 cents.

Also this week, the company announced no plans to pay dividends in the fourth quarter of fiscal year 2024. Moreover, Intel intends to lower capital expenditures by more than 20% for the full year.

Pat Gelsinger, the company’s Chief Executive Officer, said during a conference call with analysts that a decision to accelerate the production of Core Ultra chips for personal computers contributed to the loss. The mentioned microcircuits can handle the workloads that are associated with artificial intelligence.

As we have reported earlier, AMD Posts Revenue Rise.