Intel executives, including CEO Pat Gelsinger, are expected to present the company’s board of directors with a plan to offload company assets and cut costs.

Citing sources familiar with the matter, Reuters reported the plan could include the sale of the company’s programmable chip unit, Altera, and halt or abandon the planned $32 billion factory in Germany.

The news outlet said the proposal does not include plans to sell off Intel’s contract manufacturing or foundry businesses to a larger semiconductor manufacturer.

The plan is expected to be presented at a mid-September board meeting. In late August, Intel board member Lip-Bu Tan resigned, having reportedly clashed with Gelsinger and become frustrated with the company’s ‘bloated’ workforce and its failure to set out a meaningful artificial intelligence (AI) strategy.

The company is currently undertaking a $10 billion cost-cutting plan, resulting from the $1.6bn net loss Intel posted for Q2 2024. The plan involves eliminating more than 15,000 jobs from its global workforce, in addition to reducing R&D and marketing spend by billions between now and 2026, cutting capex by 20 percent, and reducing the non-variable cost of goods sold by roughly $1 billion in 2025.

Intel raised some short-term cash by selling off its 1.18 million shares in British chip design firm Arm for a reported $146.7 million. However, the company’s fortunes are seemingly set to get worse before they get better, with reports surfacing at the end of August claiming the chipmaker had hired Morgan Stanley to help defend itself against activist investors.