Intel has envisaged falling revenues, high expenses, layoffs and many austerity measures, but the dividend has remained untouched. Until now. Today, the company announced that it will drop by two-thirds, from $0.365 per share quarterly to $0.125 per share quarterly.
Intel's adjustment reinforces its target Savings targets of three billion US dollars this year alone and up to ten billion US dollars per year in 2025. This will affect layoffs and savings measures in many areas, including total expenditure (CAPEX).
Delivering $3 billion in cost savings in 2023, on the path to $8 billion to $10 billion in annualized savings by the end of 2025. This includes the difficult steps previously taken to reduce headcount and the company's ongoing efforts to reduce other operating expenses. The company is also temporarily reducing compensation and rewards programs for employees and executives, and the board has decided to temporarily reduce its compensation as well. This is in addition to the exit of seven non-core businesses since early 2021, as the company continues to sharpen its focus and drive a best-in-class operating structure.
Operating net CapEx intensity in the low 30% range in 2023 as the company prioritizes investment in strategic capital and adjusts the timing of capacity expansion in Response to near-term changes in demand.