Intel’s board is seeking new direction amid a challenging financial landscape. According to CNBC, investment consultants have been brought in to explore strategic options for the company’s future. The push for change comes as some board members are dissatisfied with current CEO Patrick Gelsinger’s approach, particularly regarding the company’s investments in artificial intelligence.
The board is engaging with various experts, including those from the banking sector, to chart a path forward. By the next board meeting in September, multiple strategic alternatives are expected to be on the table, with Morgan Stanley among the consultants involved in shaping these plans. Potential strategies being considered include the possibility of splitting the company or selling off parts of its business.
In a recent Deutsche Bank conference, Gelsinger emphasized the need for agility and decisive action. Intel’s stock has plummeted nearly 60% this year, and the company has just reported a dismal quarterly performance, announcing plans to lay off around 15,000 employees. Additionally, there is scrutiny from U.S. senators regarding the company’s use of approximately $20 billion in subsidies and loans, given the job cuts despite promises of job creation.
Intel is at a crossroads, and the involvement of consulting firms reflects the urgency to find a viable strategy to navigate its current financial woes and competitive pressures.
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