In the wake of disappointing second-quarter results, Intel Corp. ( INTC ) shares experienced a significant drop in pre-market trading on Friday. The company also announced a considerable reduction in its workforce.

What Happened: On Friday, Intel’s stock was trading 21.58% lower at $22.78 in the pre-market, at the time of writing, according to Benzinga Pro. This decline follows the company’s decision to suspend its dividend and cut its workforce by 15% in an effort to finance a costly turnaround for its chip-making business.

Intel’s shares were down about 20% in pre-market trading following the company’s announcement late Thursday. This decision has sparked concerns about Intel’s ability to compete with Taiwan’s TSMC and other chipmakers it has fallen behind in recent years.

Intel ( INTC ), once the world’s leading chipmaker, saw its market value peak at nearly $500 billion in 2000 before experiencing a slump in that year’s market selloff and never fully recovering. If Friday’s losses hold, Intel’s market capitalization would drop to about $100 billion, equivalent to less than 5% of Nvidia Corp ( NVDA ) and about 40% of Advanced Micro Devices ( AMD ) . The losses would result in a $25 billion drop in market value, marking the worst selloff since 2000.

Michael Schulman, chief investment officer of Running Point Capital, commenting on Intel’s current situation, told Reuters, “Intel has been one of the forgotten horsemen of technology the last couple decades.”

See Also: Bitcoin, Ethereum, Dogecoin Slip Amid Flare-Up Of Iran-Israel Tensions: Analyst Says ‘A Big Move Is Coming Soon’ For King Crypto

Why It Matters: Intel’s recent workforce reduction and dividend suspension are indicative of the company’s struggle to regain its footing in the competitive chip-making industry. The company’s declining market value, coupled with its inability to keep pace with other chipmakers, underscores the challenges Intel ( INTC ) faces in its efforts to turn around its business.

As the company grapples with these issues, investors and industry watchers will be closely monitoring Intel’s next moves. The company’s future success hinges on its ability to effectively implement its turnaround strategy and regain its competitive edge in the chip-making industry.

Read Next:

NVIDIA ( NVDA ), Maplebear And 2 Other Stocks Insiders Are Selling

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari