Intel CEO to pitch board on plans to cut costs, sell chip unit - Reuters

Investing.com -- Intel (NASDAQ:INTC ) CEO Pat Gelsinger is set to present a strategic overhaul to its board of directors later this month, aimed at streamlining its operations and cutting costs, Reuters reported Monday.

Gelsinger is expected to outline a plan that includes divesting non-core businesses, including its programmable chip division, Altera.

The proposal will be presented at a board meeting scheduled for mid-September, the report said.

Reuters said the plan will not include proposals to separate and sell off Intel's foundry operations. The company's manufacturing and design divisions have already been separated in financial reporting since the beginning of the year to avoid conflicts of interest and to better serve external customers of Intel’s fabrication facilities.

Intel is struggling to compete with industry leader Nvidia (NASDAQ:NVDA ) which dominates the AI chip market. Its market capitalization has plummeted below $100 billion following a disappointing second-quarter earnings report in August.

In a recent appearance at a Deutsche Bank conference, Gelsinger acknowledged the company’s challenges and reassured investors that Intel is actively addressing its issues. He emphasized that the company is entering the second phase of its turnaround strategy, with key decisions expected to be made in the upcoming board meeting.

Source: Investing.com