The Silicon Valley company said its loss for the third quarter totaled $16.6 billion, a result of $15.9 billion in charges to reflect lowered valuations of company assets and a $2.8 billion restructuring charge associated with cutting more than 15,000 workers.
Pat Gelsinger, Intel’s CEO, had ordered the restructuring in August in response to shrinking profit margins caused by the costs of catching rivals in manufacturing technology and little success in the booming market for artificial intelligence chips, among other factors.
Intel’s share price has plunged 60% since Gelsinger became CEO in February 2021. At a current market value of less than $100 billion, the longtime semiconductor industry leader has recently been discussed as a candidate for a takeover or a breakup.
“We are acting with urgency to deliver on our priorities,” Gelsinger said Thursday during a conference call with analysts. “We need to fight for every inch and execute better than ever before.”
Intel’s total revenue in the period that ended Sept. 30 dropped 6% from a year earlier to $13.3 billion, a bigger percentage decline than in the second quarter but above the midpoint of its guidance. Intel projected revenue for the current quarter of $13.3 billion to $14.3 billion, well below the $15.4 billion reported in the year-earlier period.
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But the results and quarterly guidance were better than some analysts expected, pushing Intel’s stock up more than 12% in after-hours trading.
