U.S. chip maker Intel Corp INTC-Q said on Wednesday it would lower its quarterly dividend as a part of its strategy to improve capital amid uncertain times.
The company had in January warned it would lose money in the first quarter as two of its most important markets – personal computers and data centres – were weakening after two years of strong growth during the pandemic-led remote work.
Intel has committed to reduce $3-billion in costs this year and between $8 and $10-billion in savings by the end of 2025.
The company, which reaffirmed its first-quarter forecast issued in January, said it will cut the quarterly dividend to $0.125 per share, or 50 cents annually.
The dividend will be payable on June 1 to stockholders of record on May 7.