Gelsinger opens up about Intel troubles amid talk of possible split
Intel chief Pat Gelsinger has acknowledged the chip giant's financial woes and said he is working to address investor concerns amid talk that the company is considering spinning off its foundry business and delaying expansion of its fabrication plants.
The Santa Clara megacorp has been having a rough ride this year. It reported a loss in both its Q2 and Q1 results for this year, suffered technical issues with its Raptor Lake processors, legal action from investors, and plans to lay off more than 16,000 staff or about 15 percent of the workforce, all of which has seen its stock price fall by 59 percent.
Speaking at Deutsche Bank's 2024 technology conference in California, Gelsinger said Intel is focused on the steps it needs to take to address the issues outlined during its last earnings call, but that it also needed to execute on its strategy.
Referring to the cost-cutting measures Intel has already initiated, Gelsinger said: "We realize we have to operate efficiently with nimbleness, with urgency. This is a competitive business and market, and that's part of the reason we took the actions that we did as we build it."
