Intel Cuts Dividend by Two-Thirds Amid Economic Downturn
Intel has announced that it is reducing its dividend from $0.365/share to $0.125 per share in an effort to preserve cash in the current difficult economic environment.
The dividend cut comes less than a month after Intel had reassured investors by keeping its dividend steady.
Intel’s dividend has been maintained at $0.36 for many quarters, and the cut highlights the company’s darker outlook for the year ahead.
Intel has also been implementing cost-cutting measures as part of a larger plan to cut up to $3 billion this year and up to $10 billion per year by 2025.
These measures include phasing out certain operations, layoffs, and reduced executive compensation. Intel is also betting on its own technology by building out its own internal foundry.
CEO Pat Gelsinger has said that the company is on track to deliver five nodes in four years and continues to expand its customer base.
The company has reduced its workforce but has yet to confirm the exact number of people impacted. Intel saw a 32% decline in revenues in the last quarter, and analysts are watching to see how the company will perform with current and future orders. Gelsinger dismissed rumors of chip delays.