Editor’s note: This story has been updated to correct a third-quarter earnings estimate for Intel.

Intel Corp INTC Shares fell after the company reported its second-quarter financial results on Thursday. Here’s what you need to know.

The details: Intel reported quarterly earnings of 2 cents per share, missing analysts’ consensus estimate of 10 cents by 80% and a decline of 84.62% from the same period last year.

Quarterly revenue was $12.83 billion, below the analyst consensus estimate of $12.94 billion, down 0.9 percent year over year. Data Center and AI revenue was $3 billion, down 3 percent. Client Computing Group revenue was $7.4 billion, up 9 percent. Network and Edge revenue was $1.3 billion, down 1 percent.

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Intel has announced a $10 billion cost-cutting plan to streamline operations and significantly reduce expenses and headcount. Non-GAAP research and development and marketing, general and administrative (MG&A) expenses are expected to be reduced to approximately $20 billion in 2024 and approximately $17.5 billion in 2025, with further cuts expected in 2026.

Intel expects to reduce its workforce by more than 15%, with the majority of the reductions expected to be completed by the end of 2024.

Intel also announced it would suspend its dividend starting in the fourth quarter of 2024, but reiterated its long-term commitment to a competitive dividend as cash flows improve to sustainably higher levels.

“Our financial performance in the second quarter was disappointing, despite achieving important milestones in product and process technology. Trends in the second half of the year are more challenging than expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiency while accelerating our IDM 2.0 transformation,” said Patrick GelsingerCEO of Intel.

“These actions, together with the launch of Intel 18A next year to regain leadership in process technology, will strengthen our position in the market, improve our profitability and create value for shareholders.”

Outlook: Intel expects a third-quarter loss of 3 cents per share and revenue in the range of $12.5 billion to $13.5 billion (compared to the estimate of $12.944 billion).

INTC Price Action: According to Benzinga Pro, Intel shares fell 14.60% to $29.05 in after-hours trading after falling 5.5% during regular trading on Thursday.

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