Intel (INTC) to suspend dividend payout as of Q4 2024, announces $10 billion cost reduction plan

Published , by TJ Denzer

This week, Intel posted its Q4 2024 earnings results, and they looked disastrous to say the least. It wasn’t just that the company missed on both revenue and earnings-per-share (EPS) metrics. It also announced a new $10 billion “cost reduction plan,” and with it comes a layoff that is expected to affect over 15,000 employees as it seeks to increase market competitiveness. It also announced it’s suspending dividends to try to create “long-term value for shareholders.”

Intel released its Q4 2024 earnings results laying out its cost reduction plan on its investor relations website. There, the company went into deeper detail on what exactly the $10 billion cost reduction plan entails:

Intel (INTC) stock took a major dip in after-hours trading following its Q4 2024 earnings results.
Source: Google

Intel’s employee headcount reported in 2023 at MacroTrends was at 124,800. A 15 percent employee reduction would amount to around 18,000 at those numbers. Moreover, the company’s decision to suspend dividends was explained further as it attempts to fortify its business for the quarters ahead:

It looks like not only did Intel underperform, but it’s in for choppy seas in the quarters ahead. As the company continues to try to right its path, stay tuned as we report on further Intel news, as well as more company earnings results reporting.