Intel Shares Drown As Tech Company Plans To Lay Off 15,000 Employees

From being one of the biggest names in the computer chip-making business to struggling to find its footing, Intel has come a long way from the days of glory. Amidst the tech blues that appear to have affected Wall Street, thanks to the underwhelming results, things appear to not have turned around.

Intel To Fire 15,000 Employees

The company's shares declined significantly on August 1. This came to pass after reports emerged that the tech company is planning to lay off as many as 15,000 of its employees as a part of a generic cost-cutting exercise.

This is expected to bring down the strength of the workforce by a significant 15 per cent.

This is part of Intel's USD 10 billion cost-reduction plan. According to the Santa Clara-based company, this move will help them streamline operations.

Underwhelming Q2 Results

When it comes to the financial results for Q2 of 2024, the picture, according to reports, is not rosy either. The company's sales number for the second quarter stood at USD 12.83 billion; this figure was lower than expectations of USD 12.94 billion.

In addition, the company also saw a drop in its Artificial intelligence and Data centre units as revenue dropped to USD 3 billion, declining by 3 per cent.

Its Network and Edge departments also saw a decline in their revenue, as the numbers stood at USD 1.3 billion, declining by 1 per cent.

Intel's Client Computing unit had, however, a silver lining, as the revenue garnered by this unit increased by 9 per cent to USD 7.4 billion.

At the end of the day's trade on Thursday, August 1, the company shares dropped by 5.50 per cent or USD 1.69. The value of each individual share stood at USD 29.05. In the past 6 months alone, the company's shares have lost 31.81 per cent of their value.