-Intel ( INTC ) said on Thursday it would cut 15% of its workforce and will suspend its dividend in the fourth quarter as the chipmaker pursues a turnaround centered around its loss-making manufacturing business.

Shares of the Santa Clara, California-based company fell 10% in extended trading. The stock closed down 7% on Thursday, in tandem with U.S. chip stocks plummeting after a conservative forecast from Arm Holdings on Wednesday.

A majority of the job cuts will be completed by the end of 2024, Intel ( INTC ) said.

The company also set out plans to cut operating expenses and reduce capital expenditure of more than $10 billion in 2025 compared to previous estimates.

In February last year, the company had set out to provide annual cost savings between $8 billion and $10 billion by 2025.

Intel ( INTC ) also forecast third-quarter revenue below estimates as the chipmaker grapples with a pullback in spending on traditional data center chips and increased competition in the personal computer market.

A key force in the PC revolution, Intel ( INTC ) is now trailing Nvidia in the booming artificial intelligence processor market while its data center business is facing threat from a resurgent AMD.

Stumbles in Intel's ( INTC ) manufacturing process have allowed AMD to take business, as the latter uses Taiwan Semiconductor Manufacturing Co (TSMC).

Intel ( INTC ) expects revenue to be between $12.5 billion and $13.5 billion for the quarter, compared with analysts' average estimate of $14.35 billion, according to LSEG data.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila)