"Are You a CEO, Director, or Founder interested in a Feature Interview?"
All Interviews are 100% FREE of Charge
One month after the report Net loss of $1.6 billionannounced job cuts affecting 15,000 people, $10 billion in cost savingsInter has a plan to turn things around.
Intel CEO Pat Gelsinger said on Monday Message to employees Intel will take concrete steps to improve its profitability and competitiveness. Gelsinger received the letter after spending three days last week meeting with Intel’s board of directors to discuss the company’s future direction.
“There has been endless rumors and speculation about our company, including at our board meeting last week, so I am writing today to provide an update and outline future developments,” Gelsinger wrote.
Intel CEO Pat Gelsinger. Photo by Kira Hoffman/Photothek via Getty Images
The first change is to turn Intel’s chip manufacturing business, Intel Foundry, into a subsidiary and separate it from the rest of the company.
Related: ‘Tough day for all of us’: Intel CEO announces layoffs affecting 15,000 employees
The move will give Intel Foundry greater independence, an independent funding source and the ability to report revenue independently outside of the larger Intel organization.
Intel also plans to reduce its real estate holdings by two-thirds by the end of the year and sell a portion of its stake in semiconductor company Altera to cut costs. Intel is also focusing on its AI strategy. Partnering with Amazon Web Services Intel is developing a new AI chip 8% increase Monday after the news.
“All eyes will be on us,” Gelsinger wrote in the letter, “and we must fight every step of the way and do better than ever before, because that is the only way we will silence our critics and deliver the results we know we can achieve.”
Related: How Nvidia CEO Jensen Huang transformed a graphics card company into an AI giant: “One of the most remarkable business transformations in history”
Intel is being pushed out of the graphics card market due to increasing competition from companies like NVIDIA. Intel’s GPU market share is 4% in Q1 2023 To Virtually 0% In the first quarter of 2024.
Bloomberg analysts predict Intel expects to make $52 billion in revenue this year, 70% of what it did two years ago. The people say Intel has been disadvantaged by not jumping on the AI ​​boom sooner.
Intel is down Over 53% At the time of writing, it is at its lowest since the start of the year, but has risen by more than 16% in the past five days.
"Elevate Your Brand with an Exclusive Feature Interview!"