Intel (INTC) suspends dividend payments from Q4 2024 and announces $10 billion cost-cutting plan

This week, Intel released its fourth-quarter 2024 results, and they looked disastrous to say the least. It wasn’t just that the company missed on both revenue and earnings per share (EPS) metrics. It also announced a new $10 billion “cost-cutting plan” and with it come layoffs expected to affect over 15,000 employees as the company looks to increase its competitiveness in the market. It also announced it would suspend dividends to create “long-term value for shareholders.”

Intel has released its fourth-quarter 2024 results and outlined its cost-cutting plan on its investor relations website. There, the company went into more detail about what exactly the $10 billion cost-cutting plan entails:

According to MacroTrends, Intel will employ 124,800 people in 2023. A 15% reduction in headcount would put those numbers at around 18,000. In addition, the company further explained its decision to suspend dividends as it seeks to strengthen its business for the coming quarters:

Were you surprised by Intel’s earnings miss? Check out this clip from yesterday. #GameTraderLive Where @technosucks collapsed, why he does not believe $INTC will turn it around. #Intel #Earnings pic.twitter.com/WZet1aHuxk

— Shacknews (@shacknews) 1 August 2024

It looks like Intel has not only underperformed, but there will be some shaky quarters ahead. As the company continues to try to get its course back on track, stay tuned as we report more Intel news as well as further company results.