The US chip manufacturer Intel has said that it would be laying off a significant 17,000 employees by the end of 2024 in order to achieve a financial recovery. Additionally, the corporation announced that it will cease paying dividends beginning in the fourth quarter. It had paid out a quarterly dividend of 12.5 cents per share in April. As of June 29, the massive chip manufacturer employed over 116,500 individuals.

The NASDAQ-listed company's shares fell more than 6%, hitting an intraday low of $28.89. The counter dropped 5.50 percent from its prior finish of $30.74 to settle at $29.05 today.

A Reuters story states that the entire number of job layoffs would represent 15% of the company's overall workforce, or around 17,500 workers. Due to a decrease in expenditure on conventional data center semiconductors, the business anticipates third-quarter revenue below market projections, lagging behind its competitors in this regard.

"I need less people at headquarters, more people out in the field, supporting customers," CEO Pat Gelsinger told Reuters in an interview on the job losses. Regarding the dividend suspension, he stated, "Our goal is to... pay a competitive dividend over time, but right now, we're focusing on the balance sheet and deleveraging."

In an effort to regain the technological advantage it lost to Taiwan's TSMC, the world's largest contract chipmaker, Intel is currently implementing a recovery strategy focused on developing cutting-edge artificial intelligence (AI) chips and expanding its production capabilities for hire, according to Reuters.

Intel is also reducing back on investment. By 2025, it intends to lower capital costs by 17% per year to $21.5 billion.