Intel’s Catastrophic Collapse: 15% of Workforce Axed, Dividend Suspended

In a desperate bid to salvage its flailing fortunes, Intel is cutting a staggering 15% of its workforce, a devastating blow to the chip maker’s already reeling employees. The brutal purge, which will axe a whopping 17,500 jobs, is part of a larger plan to slash costs and refocus on its money-losing manufacturing business.

But that’s not all – Intel is also suspending its dividend payments, a move that will further punish investors who have seen the company’s stock plummet. The shares slumped a whopping 20% in extended trading, wiping out a staggering $24 billion in market value.

The writing is on the wall: Intel’s attempts to pivot towards AI chips have fallen flat, with the company struggling to keep pace with its rivals. The results are a far cry from the optimistic predictions made by CEO Pat Gelsinger, who claimed that the company would be a major player in the AI market.

Gelsinger’s Failed Vision

Gelsinger’s grand plan to turn around the foundry business has been met with skepticism, with analysts questioning whether it’s too little, too late. The company’s cash reserves are dwindling, and its debt is mounting.

But Gelsinger remains defiant, insisting that the company needs to "deleverage" and focus on its balance sheet. The irony, of course, is that Intel’s first AI PC-focused processors are selling better than expected – but at a significant cost, which is eating into the company’s profits.

The Writing is on the Wall

Intel’s data centre business is in freefall, declining 3% in the latest quarter. The company’s PC chip business grew 9% in the same period, but it’s not enough to offset the losses.

Analysts are bearish on Intel’s prospects, with some predicting that it will take years for the company to turn things around. TSMC, Intel’s main rival, is expected to maintain its lead in the market for AI chips.

The End of an Era?

Intel’s collapse is a stark reminder of the dangers of complacency and the importance of staying ahead of the curve in the rapidly evolving tech industry. The company’s failure to adapt to changing market conditions has left it vulnerable to the whims of its competitors.

As Intel’s stock continues to plummet, one thing is clear: the company’s days as a dominant force in the tech industry are numbered.