Intel’s board of directors, in the face of a difficult financial situation in the company, as reported by CNBC, hired investment consultants to find new strategic ways for the company’s development. Some executives are not satisfied with the plans of the current head of the company, Patrick Gelsinger, due to the lack of serious bets on artificial intelligence.
Image Source: Intel
According to the source, members of the Intel board of directors are consulting with various experts, including representatives of the banking community, to find ways out of the crisis. It is possible that at the next board meeting in September, several strategic alternatives will be presented to Intel management, with consultants from Morgan Stanley, among others, involved in their development. A wide range of alternatives will be considered, including the possibility of breaking up the business and selling some parts of it.
At the Deutsche Bank conference, Patrick Gelsinger said: “We understand that we must act effectively with sufficient agility and efficiency.” It was previously reported that Intel management may need the help of Morgan Stanley consultants to protect itself from unwanted actions by shareholder activists. Intel’s stock price has dropped almost 60% since the beginning of this year. At the beginning of the month, the company published a disastrous quarterly report, announcing plans to lay off about 15,000 employees. In addition, US senators have questions for Intel about the justification of allocating about $20 billion in subsidies and soft loans to the company, since instead of creating new jobs in the US, it is going to reduce their number.