Intel announces plan to cut 15,000 jobs to ‘resize and refocus’ business

Intel, the chipmaker, has announced plans to cut more than 15,000 jobs as it tries to cut billions of dollars in costs and turn its business around to compete with more successful rivals.

Shares in the company sank 19% as a string of leading technology stocks came under pressure on Thursday following a fresh batch of lackluster earnings that contributed to a sell-off on Wall Street.

Intel said it would cut 15% of its massive workforce in a bid to “resize and refocus”, with the bulk of the layoffs taking place this year. At the end of last year, it had 124,800 employees, according to a regulatory filing.

As it announced the move, Intel reported a loss in its second quarter, along with a small revenue decline, and forecast third-quarter revenues below analysts’ expectations.

Amazon’s stock also dropped more than 4% after the online retail giant reported sales that fell short of expectations in the latest quarter, and braced investors for a potential slowdown in the next.

While its profits almost doubled to $13.5bn in the second quarter, which ran to June, total revenue rose 10% to $148bn, slightly short of the average $148.67bn forecast by analysts, and a weaker-than-anticipated projection for the current quarter unsettled some shareholders.

Snap, owner of Snapchat, reported sales for the last quarter that missed expectations and issued guidance for the current quarter that fell short. It is facing stiff competition from larger social media companies for advertising dollars. Shares in company fell 17%.

Apple bucked the trend, as a pickup in demand for the iPhone helped it return to growth and offset a bigger-than-expected sales decline in China, a major market.

High-profile tech stocks have struggled in recent weeks. Weak earnings from Tesla and Google triggered a sell-off last week, although Meta Platforms, the owner of Facebook, Instagram and WhatsApp, provided some reassurance on Wednesday.

Reuters and Associated Press contributed reporting