Intel has faced a challenging year with chip crashing issues, disappointing financial results, and mass layoffs adding to the company’s troubles. CEO Pat Gelsinger and key executives are reportedly working on a plan to present to the company’s board of directors with ideas on how to reverse its fortunes. This plan includes proposals to streamline operations and revamp capital spending.
There are speculations about potential business units within Intel that could be trimmed down to reduce losses and improve financial stability. One such target could be Altera, a programmable chip manufacturer acquired by Intel in 2015. The possibility of spinning out Altera through an IPO or selling a portion of its stake in the company is being considered. Alternatively, Intel may choose to sell off Altera entirely to another chip maker to strengthen its financial position.
Intel’s stock value has seen a significant decline of 60% this year, signaling investor concerns about the company’s future. However, there was a slight rally after reports emerged suggesting Intel’s consideration of scrapping factory projects following disappointing financial results in August. CEO Pat Gelsinger acknowledged the challenges faced by Intel at a recent conference and highlighted the need for cost reductions and operational efficiency to navigate the competitive market landscape.
The upcoming plan to be presented to Intel’s board of directors is expected to outline further steps to address the company’s struggles and improve investor confidence. It remains to be seen which business operations within Intel might be scaled down or refocused to enhance financial performance. Strong decision-making and strategic moves are crucial for Intel to regain its footing in the industry and regain momentum.
Intel’s path to recovery may require bold actions and significant changes to its business structure. The upcoming plan to be presented by CEO Pat Gelsinger and key executives will play a crucial role in reshaping Intel’s future trajectory. By addressing challenges head-on and implementing necessary measures, Intel aims to regain stability and competitiveness in the market. Time will tell whether these actions will be effective in turning the tide for the tech giant.