Intel CEO Pat Gelsinger is preparing a strategic plan to revitalize the company's competitive position, including cost cutting and asset sales, potentially including the sale of the Altera programmable chip unit acquired in 2015.
The plan, according to multiple reports, will be presented in the company's upcoming board meeting in mid-September. Gelsinger seeks approval for the restructuring plan.
Moves considered include a potential pause on Intel's $32 billion factory project in Germany, as part of efforts to streamline operations and align with weaker revenue forecasts.
Glesinger enlisted Morgan Stanley and Goldman Sachs to advise on these asset sales
The company may sell non-essential business units, such as its foundry and other semiconductor businesses, to reduce costs and refocus on core areas, with potential buyers including Samsung Electronics and other semiconductor giants.
The company is looking at reducing headcount by over 15%, as Intel is under pressure to act due to lagging behind rivals in AI.
The company's market value has fallen below $100 billion after a rough second quarter.
Intel's stock has plunged over 57% this year, and the company recorded a net loss of $1.61 billion in the most recent quarter, primarily due to persistent issues in the server business and fierce competition from rivals like NVIDIA.
Analysts rate Intel stock as a Hold due to uncertainty surrounding the strategic changes and financial outlook, as the restructuring plan comes amid Intel's struggle to keep pace with Nvidia in the semiconductor industry.
This article was written in collaboration with Generative AI news company Alchemiq
Sources: Reuters, Benzinga, Yahoo Finance, Economic Times, Techopedia, Business Times, TechSpot, CEOWorld, TipRanks, TechMonitor, News18, StartupItalia, WhatJobs, FlipWeb, StockStar, BusinessWorld, Korea Times, Haberturk, Techzine, Cover365.