Intel Stock Plunges 26% on Bleak Forecast, Job Cuts, and Dividend Suspension

Intel`s stock plummeted 26%, the most in over 40 years, after the company issued a bleak financial forecast and announced 15,000 job cuts. This drop, which erased $32 billion in market value, follows lower-than-expected sales projections and a surprise loss prediction for the current quarter. The company will also suspend dividend payments, a first since 1992, to conserve cash. CEO Pat Gelsinger acknowledged the challenges ahead, calling these actions some of the most significant in the company`s history. Despite efforts to regain market leadership, Intel is struggling to innovate quickly enough, forcing them to prioritize cost reduction and reassure investors about future growth. While modest sales growth is projected for the coming year, the company remains significantly below its 2021 peak.