Intel Announces Layoffs After Paying $1.5 Billion In Q1 Dividends

wccftech.com:

Chipmaker Intel Corporation has confirmed another wave of layoffs after rumors suggested that the firm was reducing budgets for its data center and client computing business divisions. Intel announced widespread pay reductions earlier this year that saw senior executives and employees miss their bonuses and take salary reductions as part of the firm's efforts to reduce costs during a historic downturn in the semiconductor industry that has affected both chip designers and manufacturers. Now, in a statement sent to Tom's Hardware, the Santa Clara, California technology giant has shared that it is undergoing "function-specific workforce reductions."

Intel's earnings report for the first quarter of 2023 was one of the worst in the company's history. Its revenue dropped by 36% annually and the firm also posted a loss per share of four cents. These losses came as the firm ensured that its investors were happy and paid $1.5 billion in dividends out of pocket during Q1, keeping the payments nearly similar to the year ago quarter's figures.

Rumors of layoffs at Intel surfaced last week when Dylan Patel of Semianalysis tweeted about it and shared:

Very unfortunate news, but massive layoffs at Intel coming! Intel's Datacenter and Client computing groups are receiving ~10% budget cuts It's up to divisions to figure out how to cut Given fixed costs, means as much as 20% layoffs in groups LTD (process node) unaffected

However, at the time, he was the only source that had mentioned the new business strategy, and so it was unclear whether the layoffs would actually take place. Now Intel itself has confirmed this, after being asked by Tom's Hardware to comment on the rumors. The layoffs are part of the firm's latest efforts to retake the