Intel’s CEO will outline plans to cut costs and sell off the chip unit

Investing.com — Intel (NASDAQ:INTC) CEO Pat Gelsinger is set to present a strategic overhaul to its board later this month aimed at streamlining its operations and cutting costs, Reuters reported on 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 would not include proposals to spin off and sell Intel’s foundry operations. The company’s manufacturing and design divisions have already been separated in financial reporting since the start of the year to avoid conflicts of interest and better serve external customers of Intel’s manufacturing units.

Intel is struggling to compete with industry leader Nvidia ( NASDAQ:NVDA ) , which dominates the AI ​​chip market. Its market capitalization fell 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 assured investors that Intel is actively addressing its issues. He stressed that the company is entering the second phase of its turnaround strategy, with key decisions to be taken at the next board meeting.

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