Intel to cut over 15,000 jobs to reduce costs

US tech giant Intel said third-quarter revenue will disappoint and announced more than 15,000 job cuts, after the company lost business to rivals better equipped for the artificial intelligence (AI) boom. Shares fell more than 18% in late trading.

Sales for the current quarter will be $12.5bn to $13.5bn, the company said Thursday. Analysts had projected $14.38bn on average, according to data compiled by Bloomberg. Intel will have a loss of 3 cents a share, excluding certain items, versus expectations for a profit 30 cents.

Intel said it plans to cut more than 15% of its workforce of around 110,000 people. It's also suspending dividend payments to shareholders starting in the 4th quarter, and will continue that until cash flows improve to sustainably higher levels, according to the statement. The company has paid a dividend since 1992.

I have no illusions that the path in front of us will be easy, Chief Executive Officer Pat Gelsinger said in a memo to employees. You shouldn't either. He called the moves some of the most consequential changes in our company's history.