Intel Shares Plunge 26% on Bleak Forecast, Job Cuts, and Suspended Dividends

Intel`s stock plummeted 26% after the company announced a bleak financial outlook, job cuts, and a suspension of dividend payments. This drop, the largest in over four decades, came as Intel projected significantly lower sales and a loss for the current quarter, contrary to analyst expectations. To cut costs, Intel will lay off over 15,000 employees and halt dividend payments, marking a significant shift for the company. Despite CEO Pat Gelsinger`s efforts to revitalize Intel, the company is grappling with declining revenue and struggling to compete in the evolving technological landscape. CFO Dave Zinsner acknowledged the financial shortcomings, stating that these measures are necessary to create a sustainable business model. This announcement reveals the challenges Intel faces as it works to regain its footing in the industry.