Intel has taken several steps to try to strengthen its financials, including recently suspending its dividend and laying off about 15% of its employees, as well as separating its foundry operations from its design teams.
“Intel Chief Executive Pat Gelsinger and top executives are expected to present a plan to the company’s board this month to eliminate unnecessary businesses and restructure capital spending,” according to a Reuters report. “The plan will include ideas on how to reduce overall costs by selling businesses, including its Altera programmable chip unit, which Intel can no longer afford to fund with the company’s once-sizable profits.”
Alvin Nguyen, a senior analyst at Forrester who oversees coverage of Intel, said he remains a supporter of Intel's long-term strategy but sees several problems with its execution.