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Intel separates business

Restructuring decision was made as a result of the loss and depreciation of the shares of the American corporation

Aug 30, 2024 14:21 222

Intel separates business  - 1

The American corporation Intel is exploring various options to improve its position after the publication of the loss report and devaluation of the shares, reported ag. Bloomberg, citing anonymous sources at the company.

According to their information, the current period has become “the most difficult for Intel in all its 56 years of existence”. Against this background, the corporation is discussing with the financial groups Morgan Stanley and Goldman Sachs various scenarios for getting out of this situation, including the separation of the product and production businesses, as well as the refusal of the implementation of some projects. Bankers also offer the corporation options that include mergers or acquisitions of some of its divisions by others. All of these scenarios are expected to be discussed at a meeting of Intel's board of directors in September.

In particular, the corporation is discussing the option of selling a division that produces chips for customers unrelated to Intel's core business. The agency noted that the company's management had previously viewed the business as "key to restoring Intel's position among chipmakers and had hoped that it would eventually compete with companies such as Taiwan Semiconductor Manufacturing Co., which became a pioneer in semiconductor manufacturing." An Intel representative declined to comment on the company's plans to improve its financial condition.

In the last quarter of the year, Intel faced a net loss of 1.61 billion USD, and experts expect further deterioration of the corporation's financial results in the coming year. Against this background, Intel announced the reduction of 15,000 jobs. The company's stock has already lost 60% of its value this year.

On August 2, Bloomberg reported that Intel shares fell 20% after reporting losses and announcing plans to cut 15% of jobs. According to the agency, the company's revenue fell by 1% compared to the same period last year and amounted to USD 12.8 billion. According to information on Intel's website, the company also intends to stop paying dividends to shareholders from October.

Intel Corporation was founded in 1968. Its headquarters are located in Santa Clara (California). The corporation manufactures electronic devices and computer components, including microprocessors.