Intel lays off 15% of its staff and its stock tumbles as it struggles to turn around its ailing business

Intel plans to reduce costs by cutting 15% of its workforce, amounting to $10 billion in savings. The company’s CEO, Pat Gelsinger, expressed the need to align the cost structure with the new operating model. Intel reported a 1% decline in revenue in the second quarter, citing low growth and margins. It has struggled to keep up with competitors in mobile chips and artificial intelligence (AI). As part of its restructuring, Intel aims to manufacture processors for other companies. The company hopes that its investments in AI will pay off and is aiming to cut $10 billion by 2025. Additionally, Intel will suspend its dividend starting in the fourth quarter of 2024. In other tech news, Amazon reported a 10% sales growth and nearly doubled operating profit, but its guidance disappointed investors.