Subj : Intel CEO expected to pitch cost-saving measures to revive chip c
To   : All
From : TechnologyDaily
Date : Mon Sep 02 2024 16:30:05

Intel CEO expected to pitch cost-saving measures to revive chip competition

Date:
Mon, 02 Sep 2024 15:29:00 +0000

Description:
In response to poor financial performance and competition from AMD and 
Nvidia, Intel might take more action.

FULL STORY
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Exclusive Reuters reporting reveals potential upcoming cost-saving measures 
likely to be put forward by Intel CEO Pat Gelsinger to the companys 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 

Gelsinger expressed concern about the companys 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 Intels AI PC 
efforts as well as higher than typical costs relating to non-core businesses 
for the poor performance. 

 Reuters reports that the CEO could announce plans to sell its programmable 
chip unit Altera. 

Gelsingers plans may also include a pause  or termination  to Intels $32 
billion Germany factory plans, which have already been delayed. 

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 behind AMD ($240.44 billion market cap, $5.8 billion 
in revenue last quarter) and Nvidia ($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 the 
announcement , Gelsinger stated: We must align our cost structure with our 
new operating model and fundamentally change the way we operate. 

 TechRadar Pro has asked Intel to confirm the report, but the company did not 
immediately respond. More from TechRadar Pro Intel confirms plans to lay off 
15,000 employees following poor 2024 performance Prepare with the best job 
sites and best recruitment platforms Weve rounded up a list of the best 
processors



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Link to news story:
https://www.techradar.com/pro/intel-ceo-expected-to-pitch-cost-saving-measures
-to-revive-chip-competition


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