LogInThe new plan aims to "slice off unnecessary businesses and revamp capital spending."
Intel
Chip giant Intel has been going through a difficult time. Last month, it announced a massive layoff to reduce over 15% of its workforce, which is between 15,000 and 19,000 employees, as part of its cost-cutting strategy aiming to save $10 billion. Just a month later, CEO Pat Gelsinger is reportedly going to propose to the board a new plan to cut costs and “slice off unnecessary businesses and revamp capital spending.”
This information comes from a source who told Reuters that CEO Pat Gelsinger and other executives will present a detailed plan to the board of directors at a meeting to be held around mid-September. The plan aims to help the company overcome its current challenges.
“The plan will include ideas on how to shave overall costs by selling businesses, including its programmable chip unit Altera, that Intel can no longer afford to fund from the company’s once-sizeable profit.”
Intel
Altera was acquired by Intel as its programmable chip unit in 2015 for $16.7 billion and became independent again in February this year. The source said Altera could be a target of the upcoming plan, and Intel has already been checking the possibility of selling it to an interested chipmaker, potentially one that is “interested in growing its portfolio.”
Last week, Pat Gelsinger talked about the Intel's struggles in the “competitive business” during the Deutsche Bank's 2024 Technology Conference, and he said:
"We described a set of cost reductions. I can tell you today, most of those are well underway already. Like everybody in the industry, we realize we have to operate efficiently with nimbleness, with urgency. This is a competitive business and market, and that's part of the reason we took the actions that we did as we build it."
Intel is not the only one focusing on reducing cost. The gaming industry saw more layoffs recently as a measure to cut costs. In the past month, Destiny developer Bungie let go of 220 employees, which is about 17% of its workforce; Ubisoft also cut 45 positions from its San Francisco and North Carolina branches.
Rocksteady, the developer of Suicide Squad: Kill the Justice League, has reduced its staff due to the game's underperformance. Over half of the QA department members lost their jobs in the past month.
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