Intel, the PC chip maker that was once seen as completely dominant in that world, is now in dire straits. Today, a new report claims that the company's current CEO, Pat Gelsinger, along with some of the company's other executives, is working on a plan to cut down Intel. That plan will be presented to its board of directors sometime in mid-September.
Reuters reports, via unnamed sources, that the plan may involve selling off Altera, a business that Intel acquired in 2015 for $16.7 billion. The Altera division makes field-programmable gate arrays or FPGA processors. However, Intel is now thinking about selling that division to a third party, with Marvell mentioned in the article as one possible buyer.
The article also mentions that Intel's executives are considering pausing or canceling plans to build a huge $32 billion chip factory in Germany. However, the plans do not yet include selling or splitting off Intel's foundry business. These plans could change before the executives meet with Intel's board.
In addition to Intel's executives, the company has reportedly hired the high-powered financial firms Morgan Stanley and Goldman Sachs to offer their own ideas of how the company can cut costs.
All of these cost-cutting measures are being considered after Intel revealed a few weeks ago that it would lay off about 15,000 of its employees, which would affect about 15 percent of its total workforce. It also announced a suspension of its stock dividend payout to stockholders starting in the fourth quarter of 2024.
During that announcement, Gelsinger stated, "Our costs are too high, our margins are too low." He revealed that the company had a cost reduction plan that would total $10 billion. One thing that has already been canceled due to these cost-saving measures is the 2024 Intel Innovation Developer Conference, which was supposed to be held later in September.
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