06:17 AM EDT, 08/02/2024 (MT Newswires) -- (Updates with the stock move in the headline and the first paragraph.)

Intel ( INTC ) shares were down 22% in premarket activity on Friday after the company overnight reported a drop in Q2 earnings and sales and suspended its dividends starting Q4 while undertaking a cost-cutting program.

The company reported Q2 non-GAAP net income Thursday of $0.02 per share, down from $0.13 a year earlier.

Analysts polled by Capital IQ expected $0.10.

Revenue for the quarter ended June 29 was $12.83 billion, down from $12.95 billion a year earlier.

Analysts surveyed by Capital IQ expected $12.98 billion.

The company said it expects a Q3 non-GAAP diluted loss of $0.03 on revenue of $12.5 billion to $13.5 billion.

Analysts surveyed by Capital IQ expect earnings of $0.31 on revenue of $14.39 billion.

The company said it was undertaking a $10 billion cost reduction plan, including a more than 15% headcount reduction, to increase market competitiveness.

Intel ( INTC ) further said that it would suspend its dividend starting in Q4.

Price: 22.76, Change: -6.29, Percent Change: -21.65