Intel is going through the most difficult period in its 56-year history, and in order to improve the situation, the company is talking to investment bankers to find a way out of the predicament. This was reported by Bloomberg.
The company is discussing various scenarios, including the possibility of separating the product development and manufacturing businesses. They are also discussing which factory projects could potentially be canceled. This is according to people familiar with the case who wished to remain anonymous.
Intel will now receive advice from Morgan Stanley and Goldman Sachs Group Inc. Among other things, the discussions included proposals for mergers and acquisitions.
These discussions become even more urgent after the company's disappointing quarterly financial report, which sent the stock price plummeting by 30% in a day and has since dropped to its lowest level since 2013. Overall, in 2024, the company's share price fell by 60%.
Potential solutions to the difficult situation are expected to be presented at the company's board meeting in September. Currently, most of the discussions are at an early stage and no major decisions are expected.
Earlier, the company announced that it would lay off 15,000 employees to save $10 billion in 2025. Intel also recently sold its stake in Arm Holdings.