Just over a month ago, the technology industry experienced a seismic earthquake when we learned about Intel’s delicate health condition. Since then, the company has received several wake-up calls in the form of declining sales, as users have started to choose other options and have placed more value on companies like AMD. As expected, this has had a direct impact on Intel’s organizational chart, as confirmed by the company’s own Pat Gelsinger (CEO) in internal meetings.
As indicated by the PC Gamer portal in a recent publication, Gelsinger revealed his intention to prepare a cost-cutting plan that he will present to the board of directors in the coming days. With this plan, he aims to eliminate unnecessary businesses and also review the company’s capital spending. In the past year, Intel has faced several challenging months due to issues in chip manufacturing, disappointing financial results, and, on top of that, announcing massive layoffs. Therefore, after separating its design and manufacturing businesses, it plans to cut in other areas to reduce losses.
Intel may sell companies to improve its finances
One of the first options could be to sell Altera, a programmable chip manufacturer that Intel acquired in 2015 for 16 billion euros. Thus, the company’s intention is to sell this company to improve its finances, but it won’t be its only move. As a direct result of its 2024 results, Intel has seen its stock fall by 60%. However, after considering the possible cancellation of factory projects, the stocks rebounded and started to rise again.
Gelsinger, in a recent conference, acknowledged the challenges the company is facing and the need to take urgent measures to improve the situation. Therefore, he confirmed that many of the cuts are already underway and also acknowledged that the company is seeking to operate more efficiently and agilely. Thus, no split of Intel is expected nor a possible sale of the foundry, but they do trust in regaining investor confidence with firm and strategic decisions that will take place in the coming months.
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