Intel's Q1 2023 earnings report was one of the worst in the company's history, with a 36% YoY drop in revenue and a loss of four cents per share.
Despite this, the chipmaker paid $1.5 billion in dividends to its investors, keeping payments on par with the previous year's Q1. In an effort to reduce costs and increase efficiency, Intel is now undergoing "function-specific workforce reductions," confirming rumors of potential layoffs.
The company aims to retake the chipmaking throne from Taiwan Semiconductor Manufacturing Company (TSMC) and expand its manufacturing operations in the United States.
This move follows February's pay cuts, including the suspension of merit bonuses, salary reductions of up to 25%, and the suspension of quarterly and annual bonuses. With market capitalization lagging behind rival Advanced Micro Devices (AMD), Intel is under pressure to regain data center market share.
