Intel’s CEO is reportedly set to present cost-cutting plan to the board and may ‘slice off unnecessary businesses’. Ouch

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Intel’s CEO is reportedly set to present cost-cutting plan to the board and may ‘slice off unnecessary businesses’. Ouch

When you buy through links on our articles, Future and its syndication partners may earn a commission.

data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==

Credit: CNBC

It’s been a tough year for Intel.

This is the hidden content, please

• Sign In
• or
• Sign Up

, dismal financial results, and the announcement of mass layoffs have taken the chip maker from a brand thought off as one of the giants in the industry, to one that seems to be beset by troubles on all fronts.

Now,

This is the hidden content, please

• Sign In
• or
• Sign Up

that CEO Pat Gelsinger and other key executives are expected to announce a plan to the company’s board of directors this month, detailing ideas as to how to turn its fortunes around, including proposals to “slice off unnecessary businesses and revamp capital spending”.

According to the source, there are no current plans to split Intel and sell off its foundry to another buyer, as Bloomberg reported last week. That being said, the plan is not yet thought to be finalised, and is subject to change between now and its presentation at a mid-September board meeting.

Intel’s design and manufacturing businesses have already been separated, but even if the foundry ********, there are potential businesses that Intel could trim down in an effort to cut its losses. Altera, a programmable chip manufacturer acquired by Intel in 2015, is thought to be a likely target—as Intel was previously thought to be considering spinning out the company through an IPO

This is the hidden content, please

• Sign In
• or
• Sign Up

in the company in the future.

That being said, given that Intel bought Alterea for $16.7 billion, it could be sold off entirely to another chip maker to shore up Intel’s finances. Intel’s stock value had declined by 60% this year, before

This is the hidden content, please

• Sign In
• or
• Sign Up

that it was considering scrapping factory projects after

This is the hidden content, please

• Sign In
• or
• Sign Up

posted in August.

Pat Gelsinger

This is the hidden content, please

• Sign In
• or
• Sign Up

at a Deutsche Bank conference last week, and referenced the markets reaction to the recent steps to address them:

“It’s been a difficult few weeks…we’ve been working hard to address the issues.

“We were determined to lay out a clear view of where we were, but also some of the next steps that we needed to address for the next phase of our strategy. And obviously, the market didn’t respond positively.

“We described a set of cost reductions. I can tell you today, most of those are well underway already. Like everybody in the industry, we realize we have to operate efficiently with nimbleness, with urgency. This is a competitive business and market, and that’s part of the reason we took the actions that we did as we build it.”

Time will tell as to what this new plan might look like, and exactly which of Intel’s business operations might be trimmed down to boost its finances and steady investor confidence. One way or the other, it seems strong moves and bold decision making may be needed to put Intel back on a steady path—and if these reports turn out to be correct, the company will be hoping that the decisions made here will turn things around for the seemingly stumbling giant.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Intels #CEO #reportedly #set #present #costcutting #plan #board #slice #unnecessary #businesses #Ouch

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up