Intel (INTC) plans to lay off roughly 15,000 employees this year and will stop paying its dividend, as the chipmaker tries to cut costs. The company said third quarter revenue will be $12.5 billion to $13.5 billion, which was below analyst expectations. Intel has already been struggling to keep up with competition in the AI chip space, including Nvidia (NVDA) and Taiwan Semiconductor (TSM).

In an interview with Yahoo Finance Executive Editor Brian Sozzi, Intel CEO Pat Gelsinger addressed the cost cuts and layoffs saying, "The capex reductions are about making a more efficient Intel."

And when it comes to the disappointing third quarter guidance Gelsinger said, "We see the market recovering more slowly than we indicated at the start of the year."

For the second quarter, Intel missed expectations for both earnings and revenue. The company reported earnings per share (EPS) of $0.02 on revenue of $12.8 billion. Analysts were looking for EPS of $0.10 and revenue of $12.9 billion.

This post was written by Brian Sozzi and Rachel Sherman.