Intel Stock Plunges on Wider-Than-Expected Loss, Layoffs To Cut Costs [Video]

Intel (INTC) shares plunged in extended trading Thursday after the company posted a wider-than-expected loss and said it would lay off 15% of its workforce as part of a $10 billion cost-savings plan.

The chipmaker missed expectations on its top and bottom lines, swinging to a second-quarter loss of $1.6 billion from a profit of $1.5 billion a year earlier. Revenue of $12.8 billion was down 1% year-over-year.

“Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity,” CFO David Zinsner said.

Intel said it expects third-quarter revenue of $12.5 billion to $13.5 billion, well below the $14.3 billion analysts had been expecting. It projected a loss of 24 cents per share, while analysts had expected a profit of 3 cents. 

In order to bring down costs, Intel said it would reduce its headcount by …