Intel Announces Layoffs After Paying $1.5 Billion in Dividends

Despite experiencing a 36% annual drop in revenue and reporting a loss of four cents per share, Intel went onto offer a hefty $1.5 billion in its Q1 dividends

Soon after Intel reported a 36% annual drop in its revenue, analysts started speculating that the company might possibly introduce budget cuts in its data center and client computing divisions. Making these speculations true, Intel has announced that it will introduce a new layoff round and let go of more employees.

This layoff confirmation isn’t Intel’s only attempt at further reducing its costs and increasing its revenue, the company just earlier this year introduced widespread pay reductions while also missing bonuses for senior executives and employees.

Talking about its layoffs, Intel reported that it is currently undergoing a “function-specific workforce reductions”, which means that the company is reducing the amount of people working in each department, in attempts to reduce costs and increase its efficiency.

Working towards massively reducing its costs, Intel is affected by a severe downturn in the semiconductor industry, which has made business difficult for not just Intel but for all those companies operating in the chip designing and manufacturing industry.

Releasing its first quarter report, Intel reported that it has experienced a 36% annual drop in revenue, while also facing a loss of 4 cents per share.

Despite the massive revenue drop, the company continued to satisfy its investors by offering a total of $1.5 billion in Q1 dividends thus spending an amount similar to what it did last year.

It seems that Intel is now trying to regain its position as a market leader after Taiwan Semiconductor Manufacturing Company (TSMC) took over the number one position. It’s also being said that Intel plans to open up more manufacturing units throughout the United States.

While the company has some massive growth plans, will it be able to successfully execute them, specially after reducing its workforce.

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