Pat Gelsinger, CEO of beleaguered hotplate-maker Intel, has tasked his hopelessly outclassed team with finding new cost savings as he looks to “austerity” for salvation.
Brian Sozzi for Yahoo Finance:
“This is a time for a bit of austerity,” Gelsinger told Yahoo Finance on Friday. “We had stuff we created over the last decade that needed to be cleaned up. It helps drive a more accelerated pace to the transformation we have under way.”
Gelsinger told investors on the company’s second quarter conference call last week he has exited six businesses since taking over as CEO in 2021. More recently, the company has exited its drone business.
These business exits come at a critical time for Intel as it invests aggressively in its budding foundry business and in new chips to regain market share from the likes of AMD. They also arrive as Intel’s struggles deepened in the second quarter due to product delays and flagging consumer demand for PCs.
Shares of Intel fell more than 8% in Friday’s session. Seven Wall Street firms slashed their ratings on Intel’s stock, owing to skepticism around a fourth quarter business recovery.
MacDailyNews Take: Pat Gelsinger elevates clueless flailing to an art form. He approaches Ballmeresque levels in not only his incompetence, but also in the depths of his denial.
We’d write more, but our lovely co-workers today left us with our last Intel-handicapped Mac as a sick joke and we can barely think straight over the fan noise and heat exhaust.
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Sounds like Intel employees have another ACT to look forward to – it didn’t go well when Brian Krzanich did it, and it won’t go over well now.