RHC Editorial Staff: 1 September 2024 08:48
Intel Corp. is considering selling its foundry business in an effort to shore up its financial performance, multiple publications reported today.
CNBC he quoted sources say such a deal is one of several options the chipmaker is considering to weather headwinds plaguing its business.
Bloomberg, meanwhile, he reported that Intel may also consider abandoning some construction projects.
Support Red Hot Cyber through
The development comes just weeks after the company posted quarterly results that fell short of market expectations. Intel’s sales in the three months ended June 29 fell 1% to $12.8 billion, slightly below the $12.9 billion analysts had forecast. The company’s adjusted earnings of 2 cents a share fell well short of the 10 cents investors had expected.
In response to disappointing results, Intel announced a broad restructuring initiative designed to improve its profitability. The effort will see the company lay off approximately 15% of its workforce. Intel has set a goal of cutting its annual expenses by $10 billion next year.
A sale of Intel’s foundry business, which uses the company’s factories to make chips for other organizations, could potentially help further reduce operating costs. The unit reported a loss of $1.8 billion last quarter. Analysts cited by Bloomberg expect the business to remain in the red for the foreseeable future.
Editorial Staff
The Red Hot Cyber editorial team is made up of a group of individuals and anonymous sources who actively collaborate by providing preview information and news on cybersecurity and IT in general.