Exclusive-Intel CEO to pitch board on plans to shed assets, cut costs, source says
) CEO Pat Gelsinger and key executives are expected to present a plan later this month to the company’s board of directors to slice off unnecessary businesses and revamp capital spending, according to a source familiar with the matter, as they try to revive the once-dominant chipmaker's fortunes.
The presentation, including the plans around its manufacturing operations, are not yet finalized and could change ahead of the meeting. Intel is suffering through one of its worst periods as it attempts to play catchup in the AI era against the likes of Nvidia , the dominant AI chipmaker with a $3 trillion market capitalization. In contrast, Intel's has now sunk to below $100 billion after a disastrous second-quarter earnings report in August.
In addition to the CEO and executive plans, Intel has retained Morgan Stanley and Goldman Sachs to advise the board on what businesses Intel can sell and what it needs to retain, according to two sources with knowledge of the company's advisory plans. Last Thursday, after the Reuters report, Gelsinger sought to reassure investors about the company’s weak financial performance.
Part of those plans will remain unresolved until the mid-September meeting. Then, the company’s directors will likely make crucial decisions about which businesses Intel will keep and which it will shed.
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