Intel Shareholders Are Paid Billions After Intel Announces Layoffs

(CTN News) – Intel Corporation, a prominent chipmaker known for its chips for data centers and client computing, has confirmed that it is undertaking additional layoffs in the wake of speculation about budget cuts.

A significant downturn in the semiconductor industry, which impacted chip designers and manufacturers, led Intel to implement a number of cost-cutting measures earlier this year, including removing bonuses and cutting salaries for senior executives and employees, as part of its cost-cutting measures.

The technology giant has informed Tom’s Hardware that as a response to inquiries from the publication, it is currently undergoing “function-specific workforce reductions” as a part of its restructuring plan.

Among Intel’s historically worst quarterly earnings reports for the first quarter of 2023, the company recorded one of its worst quarters in its history.

There was a dramatic drop of 36% in revenue for the company on an annual basis, and the company reported a loss of four cents per share.

While Intel suffered losses during the first quarter of the year, the company remained committed to satisfying its investors as it paid $1.5 billion in dividends directly out of its own funds during the first quarter, maintaining levels of dividend payments similar to those for the previous year.

In the beginning, reports of potential layoffs as well as a new business strategy were speculative and had not been officially confirmed by the company.

The company has now confirmed these reports after being contacted by Tom’s Hardware about the reports.

There have been significant layoffs at Intel during the last couple of months as the company looks to regain its position as one of the most dominant chipmakers, competing against Taiwan Semiconductor Manufacturing Company (TSMC) and trying to establish more manufacturing facilities in the United States.

As of right now, the company’s market capitalization stands at $129 billion, which is lower than that of its smaller competitor, Advanced Micro Devices, Inc. (AMD), which has a market capitalization of $198 billion.

On the stock market, AMD has a market cap of $145 billion, and analysts are generally optimistic about the company’s prospects, anticipating continued growth in its market share for data centers throughout the year, which could result in a significant increase in revenue.

There is a possibility that this growth could coincide with Intel’s data center division reducing its workforce during this period.

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