Intel (INTC) shares surged in extended trading on Monday after CEO Pat Gelsinger updated investors on the company’s efforts to cut costs and secure new business. Shares rose over 8% after the closing bell, following a 6% increase during regular trading, although Intel’s stock has lost more than half its value since the start of the year.
Gelsinger outlined several cost-cutting measures, including layoffs, reducing the company’s real estate footprint, and selling part of its stake in the Altera programmable chip unit. He also revealed that Intel plans to turn its chip-manufacturing division, Intel Foundry, into a separate subsidiary. This move is expected to give the foundry greater operational independence and the ability to seek its own financing, helping Intel optimize its capital structure.
Additionally, Intel announced multibillion-dollar deals to manufacture custom chips for Amazon (AMZN) and the U.S. military, highlighting the company’s commitment to expanding its foundry business. These deals demonstrate the progress Intel is making in becoming a global leader in chip manufacturing.
Gelsinger also confirmed that Intel will continue its projects in Arizona, Oregon, New Mexico, and Ohio, ensuring the company is positioned to scale up production based on market demand.