Summary:
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Massive Layoffs: Intel plans to lay off over 16,000 employees, more than 1% of its global workforce, as part of a comprehensive strategy to improve its financial position and streamline operations. These job cuts are expected to be completed by the end of 2024.
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Reduced Expenditures: The company will significantly reduce its capital expenditures by over 20%, targeting $25 to $27 billion in 2024, with further cuts anticipated in 2025. This adjustment aligns with Intel’s shift toward capital efficiency after achieving its goal of developing five process nodes in four years.
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Dividend Suspension: As part of its financial restructuring, Intel will suspend its quarterly dividend starting in the fourth quarter of 2024. These measures aim to prioritize liquidity for strategic investments, with an overall expected savings of over $10 billion by 2025.
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