Chipmaker Intel has announced plans to cut more than 15,000 jobs as it tries to cut billions of dollars in costs and pivot its business to compete with more successful rivals.
The company’s shares fell 19% as a number of leading technology stocks came under pressure on Thursday after a new batch of lackluster earnings contributed to a sell-off on Wall Street.
Intel said it would cut 15 percent of its massive workforce in a bid to “rightsize and refocus,” with the bulk of the layoffs coming this year. It had 124,800 employees at the end of last year, according to a regulatory filing.
In announcing the move, Intel reported a loss for its second quarter, along with a small decline in revenue, and forecast third-quarter revenue below analysts’ expectations.
Amazon shares also fell more than 4% after the online retail giant reported sales that missed expectations in the latest quarter, preparing investors for a possible slowdown in the next.
While its profit nearly doubled to $13.5 billion in the second quarter ended in June, total revenue rose 10% to $148 billion, slightly below the $148.67 billion average expected by analysts, and a weaker-than-expected outlook for the current quarter unsettled some shareholders.
Snap, which owns Snapchat, reported sales for the latest quarter that missed expectations and issued guidance for the current quarter that fell short. The company faces stiff competition for its advertising dollars from the big social media companies. The company’s shares fell 17%.
Apple bucked the trend as a rebound in iPhone demand helped it return to growth and offset a bigger-than-expected sales drop in China, a key market.
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High-profile tech stocks have struggled in recent weeks. Weak results from Tesla and Google sparked a sell-off last week, though Meta Platforms, the owner of Facebook, Instagram and WhatsApp, offered some reassurance on Wednesday.
Reuters and the Associated Press contributed to this report.
