Intel Held Days of Pivotal Meetings to Create a Plan to Turn Things Around: 'No Shortage of Rumors and Speculation'

A period aft reporting a $1.6 cardinal nett loss, announcing layoffs that affected 15,000 people, and stating that it wants to reduce costs by $10 billion, Intel has a scheme to move things around.

Intel CEO Pat Gelsinger wrote successful a Monday message to employees that Intel will beryllium taking actual steps to go profitable and competitive. The missive arrived aft Gelsinger met pinch Intel's committee past week for 3 days to fig retired a way forward.

"There has been nary shortage of rumors and speculation astir the company, including past week's Board of Directors meeting, truthful I'm penning coming to supply immoderate updates and outline what comes next," Gelsinger wrote.

Intel CEO Pat Gelsinger. Photo by Kira Hofmann/Photothek via Getty Images

The first alteration is making Intel Foundry, Intel's chipmaking business, a subsidiary and separating it from the remainder of the company.

Related: 'Tough Day For All of Us:' Intel CEO Announces Layoffs Affecting 15,000 People

The move will let Intel Foundry to beryllium much independent, person abstracted backing sources, and study net connected its ain extracurricular of Intel's larger organization.

Intel additionally plans to trim the existent property it holds by two-thirds by the extremity of the twelvemonth and waste portion of its liking successful semiconductor institution Altera to trim costs. Intel is besides focusing connected AI strategy and announced a partnership pinch Amazon Web Services to create caller AI chips. Intel shares jumped 8% connected Monday aft the news.

"All eyes will stay connected us," Gelsinger wrote successful the letter. "We request to conflict for each inch and execute amended than ever before. Because that's the only measurement to quiet our critics and present the results we cognize we're tin of achieving."

Related: How Nvidia CEO Jensen Huang Transformed a Graphics Card Company Into an AI Giant: 'One of the Most Remarkable Business Pivots successful History'

Intel faces rising title from the likes of Nvidia, which has pushed it retired of the graphics cards space. Intel's GPU marketplace stock went from 4% successful the first 4th of 2023 to effectively 0% successful the first 4th of 2024.

Bloomberg analysts predict that Intel will make $52 cardinal successful gross this year, aliases 70% of what it brought successful 2 years ago. They opportunity Intel mislaid crushed by not being capable to capitalize quickly connected the AI boom.

Intel was down over 53% year-to-date astatine the clip of writing, but up complete 16% successful the past 5 days.