Intel To Announce Plan To Cut Costs And Sell Businesses

The American tech corporation Intel is expected to soon announce plans to downsize and cut production costs.

According to Reuters, key executives, including the company CEO Pat Gelsinger, will share with the board of directors a new plan with significant suggestions in a few days.

“The plan will include ideas on how to shave overall costs by selling businesses, including its programmable chip unit Altera, that Intel can no longer afford to fund from the company’s once-sizeable profit,” wrote the news agency.

In August, Intel announced through a press release that it will lay off over 15,000 employees, 15% of its workforce, by the end of this year. And the downsizing strategy continues.

The upcoming meeting is planned for mid-September and should address new solutions during one of the most difficult times of the company.

As reported by Reuters, earlier this year intel split its design business from its foundry business as it has been sharing separate financial reports. This has been a strategy to separate customers and keep the secrets of the technological advances of its most advanced products, such as chips.

Intel has been having a hard time keeping up with the fast pace of AI to compete against giants like Nvidia—already developing more affordable AI chips and increasing its sales and production.

While Nvidia is one of the most powerful companies in the market —briefly reaching first place in the stock market this year— with a $3 trillion valuation, Intel has sunk below $100 billion. The earnings reports shared in August revealed a tragic panorama.

Gelsinger and other company experts will propose to reduce expenses on factory expansions including its $32 billion factory in Germany. They have also requested advice from investment companies Morgan Stanley and Goldman Sachs on what products to sell, and will likely offer them as soon as the board approves.