California, 2 August 2024 (TDI): US chip-maker Intel has said it plans to slash more than 15,000 jobs as it seeks to revive the business and catch up with competitors.
Shares in the company plunged by up to 20 percent after it announced the decision, and also reported falling sales.
The news from Intel also affected other shares in other tech giants, and contributed to a sharp fall in Asian stock markets.
Japan’s Nikkei share index closed down 5.8 percent, the largest percentage fall since March 2020 at the start of the Covid-19 pandemic, with Japanese tech firms among the biggest losers.
The Nikkei ended the day down 2,216.63 points at 35,909.70, the second-biggest points drop in its history, with concerns about the strength of the US economy also affecting stocks.
A downbeat survey of US manufacturing companies triggered fears the economy is weakening, and has increased interest in the latest US jobs figures that are due out later on Friday.
The three major share indexes in the United States closed lower on Thursday, and shares in big names, including Amazon, continued to fall in after-hours trade.
Amazon shares dropped more than 4 percent, after the e-commerce giant reported a 10 percent rise in sales to $148 billion.
That marked a slowdown from the prior quarter and it forecast further weakening in the months ahead, putting pressure on margins, even as the company ramps up investments in areas such as artificial intelligence (AI).
Intel has been struggling as businesses turn to rivals such as Nvidia, known for its powerful AI chips.
The firm said sales fell 1 percent year-on-year in the three months to June and warned that the second half of the year would be worse than expected.
It has slashed investment plans and also said it would suspend dividend payments.
