These are key days for the future of the technology firm Intel. It’s that your CEO, Pat Gelsinger, is preparing a strong restructuring plan which aims to bring to light to the company after presenting poor third-quarter results and pushed the firm’s valuation below $100 billion.
According to projections, before the end of the month, Intel’s board of directors must consider the restructuring plan that Gelsinger is currently putting together. Sale of strategic assets and business units, cessation of investment projects and mass layoffs, These are just some of the points that this business plan would include, which seeks to save the technology company.
The truth is that Intel is going through one of its worst periods as it tries to catch up in the AI era against companies like Nvidia, the dominant AI chipmaker with a market capitalization of $3 trillion.
In this framework, Intel is considering drastic measures, such as the possible splitting of its design and manufacturing businesses, as well as the review of industrial projects. such as the installation of a factory in Germany in which it planned to spend around US$30 billion.
Altera’s future in the Intel crisis
One potential unit the company could look to get rid of is its programmable chip business, Altera, which Intel acquired for $16.7 billion in 2015Intel has already taken steps to spin off the company as a separate but wholly owned subsidiary and has said it plans to sell a portion of its stake in an initial public offering in the future, though it has not set a date.
But Altera could also be sold in its entirety to another chipmaker interested in growing its portfolio.and the company has begun quietly exploring whether a sale would be possible, according to a source familiar with its advisory and business-cutting plans.
To do this, Intel CEO turns to Morgan Stanley and Goldman Sachsyour trusted financial advisors, to help you explore the available options. The market is then expecting a turnaround in the chipmaker’s business, especially after the recent publication of its quarterly financial report in which it reported net losses of US$1.61 billion, causing the value of its shares to fall to their lowest level since 2013.
In turn, the recently announced emergency cost-saving measures include a 15% reduction in its workforce, or around 15,000 jobs. To shore up its ailing finances, Intel also canceled its dividend and announced an unexpected reversal in its growing capital spending, with investments this year likely to be 20% lower than expected.
Source: Ambito
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