Intel CEO Pat Gelsinger and several executives will hold an emergency meeting to determine a course correction for the manufacturer. The meeting will focus on cost reduction and the intention to make cuts – with the discussion focusing on the Magdeburg plant in Germany and its acquisition of Altera.
The information was presented by Reuters, stating that Gelsinger wants to take drastic measures to contain the losses presented recently. The construction of the Magdeburg plant, for example, is destined to be paused or even canceled – leaving the $32 billion project unfinished.
Although Intel itself has not officially commented on the matter or what this emergency meeting is about, the Magdeburg government is already taking action and analyzing new plans in case the manufacturer withdraws from the commitment made for this project.
As mentioned above, Altera’s fate is also at risk and they intend to sell their majority stake in the programmable chip division. They were bought in 2015 and have made several investments to revive their operations, but everything indicates that they will look for a new chipmaker interested in carrying out the sale.
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An unlucky month for Intel
Since the first day of August, Intel has been in a very delicate situation. It revealed a loss of $1.6 billion; which led to the dismissal of 15% of its staff. In addition, the race for artificial intelligence has not favored them and several problems have been reported in its 13th and 14th Generation processors.
After all this, Intel saw its shares plummet completely and several moves were made to contain the damage. Not even the Innovation event, which takes place every September, was spared and had to be postponed.
In recent weeks, executive Lip-Bu Tan stepped down as the company’s board of directors (sending the stock down another 6%) – blaming overstaffing for his departure. Meanwhile, Pat Gelsinger blamed overspending on executives as a major reason for the recent decline.
Source: Tom’s Hardware
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Source: https://www.adrenaline.com.br/intel/intel-tera-nova-reuniao-de-emergencia-e-preve-novos-cortes/
