Intel CEO expected to pitch cost-saving measures to revive chip competition
Pat Gelsinger may announce some cost-cutting measures
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ExclusiveReutersreporting reveals potential upcoming cost-saving measures likely to be put forward byIntelCEO Pat Gelsinger to the company’s board of directors later this month.
Citing an unnamed source familiar with the matter, Intel plans to set free unnecessary businesses and revamp capital spending in order to address ongoing finance concerns.
The California chipmaker recently posted quarterly revenue of $12.8 billion, down 1% year-on-year, while simultaneously predicting similar next-quarter income of $12.5 billion to $13.5 billion.
Intel could be doing some more cost-cutting
Gelsingerexpressedconcern about the company’s Q2 results: “Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones.”
Company CFO David Zinsner blamed gross margin headwinds from Intel’s AI PC efforts as well as “higher than typical” costs relating to non-core businesses for the poor performance.
Reutersreports that the CEO could announce plans to sell its programmable chip unit Altera.
Gelsinger’s plans may also include a pause – or termination – to Intel’s $32 billion Germany factory plans, which have already been delayed.
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Once a market leader, Intel has struggled to play catchup against other established rivals in the AI race. It currently has a market cap of $94.04 billion, placing it far behindAMD($240.44 billion market cap, $5.8 billion in revenue last quarter) andNvidia($2.93 trillion market cap, $30.0 billion in revenue last quarter).
The news comes around a month after the company laid off around 15,000 of its workers, accounting for some 15% of its headcount. At the time of theannouncement, Gelsinger stated: “We must align our cost structure with our new operating model and fundamentally change the way we operate.”
Intel declined to comment.
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!
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