Intel chief to propose plan to trim assets, curtail costs – report

Intel’s (NASDAQ:INTC) chief executive officer Patrick Gelsinger and some other key executives are reportedly expected to table a plan later in the month to the board to cut unnecessary businesses and curtail capital spending.

The plan is anticipated to include ideas as to how to trim overall costs by selling businesses, which could consist of its programmable chip unit Altera, Reuters reported citing a source familiar with the matter.

The news comes a couple of days after, Intel (INTC) was said to be exploring options, such as splitting its foundry business and potentially scrapping factory projects, as the troubled chipmaker struggles to turn around its business amid mounting losses.

Intel’s (INTC) latest earnings and guidance widely missed expectations, while it will cut jobs and suspend its dividend to lower costs. The news sparked a major selloff on August 2, marking the stock’s worst day in over 50 years.

The plan does not yet have any proposal to split Intel (INTC) and sell off its contract manufacturing operation, or foundry business, to a buyer such as Taiwan Semiconductor Manufacturing (TSM), the report said, adding, that the proposal may also include plans to pause or altogether halt its $32 billion factory in Germany.

Gelsinger at a conference on Thursday admitted that it’s been a difficult few weeks. “… we’ve been working hard to address the issues and at earnings we were determined to lay out a clear view of where we were, but also some of the next steps we needed to address. And obviously, the market didn’t respond positively.”

Intel did not immediately respond to a request for comments.

Shares in the company were down 56.1% since the start of the year.