Semiconductor giant (NASDAQ: INTC) was expecting demand in its core markets to pick back up in the second quarter, but that demand failed to materialize. In the company's conference call with analysts on Thursday, chief financial officer David Zinsner said, "... the market has not recovered as expected, and we're obviously not satisfied with our results." 

Intel missed analyst expectations across the board, reported an unexpectedly large loss, and guided for a bigger revenue decline in the third quarter. The company is taking drastic actions to lower costs and free up cash as it continues to plot its turnaround.

Intel will reduce its head count by more than 15%, slash operating expenses by billions of dollars over the next few years, reduce its capital spending to better reflect market demand, and suspend its dividend until cash flow improves. The market reacted to this barrage of bad news as one would expect, sending shares down nearly 30% by Friday afternoon.

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Source Fool.com