Intel CEO Pat Gelsinger's Strategies to Trim Costs and Optimize Assets for Board Review
Intel CEO Pat Gelsinger's Cost-Cutting Strategy
At the upcoming board meeting, Intel CEO Pat Gelsinger will discuss essential plans to cut costs and shed assets, addressing the company’s struggle in the AI-driven chip market.
Overview of Proposed Changes
According to insider sources, the proposal includes a review of Intel's assets with a focus on selling off unprofitable units, such as its programmable chip segment, Altera, which may have potential buyers interested in expanding their portfolios.
- Cost Reduction Measures: The plan aims to optimize capital spending and potentially pause major projects, including the stalled $32 billion factory in Germany.
- Executive Support: Gelsinger’s team has brought in Morgan Stanley and Goldman Sachs to strategize on asset divestiture.
- Board Dynamics: A recent board member resignation has opened discussions on the future direction of Intel's business structure.
Next Steps for Intel
As Intel's market capitalization dips below $100 billion, focusing on efficiency and streamlining operations will be critical. The board’s decisions in mid-September will set the course for Intel’s revival strategy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.