Intel Stock Drops Toward 50-Year Low Amid Mass Layoffs
Intel's stock plunged as much as 30% on Friday after the company issued disappointing guidance and announced plans for a substantial workforce reduction. According to Bloomberg, it was the company's biggest single-day drop since at least 1982. Markets Insider reports: The decline comes after the software company announced quarterly revenue of $12.83 billion, down 1% from the previous year and missing analyst expectations of $12.94 billion, according to LSEG estimates. The company also lowered its revenue forecast for the current quarter to a range between $12.5 billion and $13.5 billion, down from analyst estimates of $14.35 billion. Intel executives pointed to unexpected trends in the most recent quarter to explain how it performed this way even with product milestones. "Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones," CEO Pat Gelsinger said in a press release. "Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies." Those operations and efficiency improvements include plans to lay off over 15% of staff by the end of this year, realign structure and operations, and cut operations expenses by over $10 billion next year. Technology shares fell across the globe following underwhelming earnings and fears of a U.S. economic recession grew. Stock markets in Europe, Asia and New York tumbled on Friday. "Japanese equities suffered their worst day since the Covid-19 pandemic rocked markets in 2020; the Nikkei 225 share index tumbled by 5.8% to its lowest closing level since January," reports The Guardian. "The broader Japanese Topix fell 6.1%, Australia's ASX fell 2.5% and Hong Kong's Hang Seng was down 2.1%." "Europe's main stock indices also declined on Friday, with European technology stocks falling to their lowest level in more than six months."
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