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Intel cuts dividend to lowest since 2007

STORY: A retrenchment at Intel. The technology giant cut its dividend payout Wednesday to its lowest level in 16 years. It also decided to scale back big investments to save cash as demand slows for its chips used in personal computers and data centers.

Intel was once a leading chipmaker but is now trying to catch up to rivals on manufacturing technology.

CEO Pat Gelsinger said Intel would hold back on tens of billions of dollars of investments on new manufacturing equipment and facilities.

The company is slashing its dividend by 66-percent though it did reaffirm its first-quarter forecast given last month.

Analysts called the move painful but necessary to ensure the company has the money available for its manufacturing plan.

Demand for Intel’s chips have slowed after two years of strong growth during the pandemic-led surge in remote work.

The stock was flat in early trading but has lost more than 40-percent of its valued over the past year.