Intel announces cost cutting plan! Including the sale of programmable chip division Altera, etc
On September 2nd, according to media reports, insiders revealed that Intel CEO Pat Gelsinger and key executives will submit a plan to the company's board of directors, which includes divesting non core businesses and adjusting capital expenditures.
It is reported that the main content of the plan includes the sale of Altera, a programmable chip division that Intel acquired for $16.7 billion in 2015.
The sale of Altera will help Intel reduce overall costs as the company can no longer provide funding for these businesses. Additionally, Intel plans to further cut expenses by selling other non core assets.
Intel also plans to present the plan at its board meeting in mid September, which currently does not include plans to sell its contract manufacturing business or contract factories to other buyers.
However, the report points out that the presentation, including the manufacturing business plan, has not yet been finalized and may change before the meeting.
After experiencing a series of financial difficulties, Intel is seeking to improve its financial situation and refocus on its core business through these measures.
In August of this year, Intel expected to reduce capital expenditures to $21.5 billion by 2025, a 17% decrease from this year, and released a lower than expected third quarter forecast.