According to Wccftech, Intel sold its stake in chip design company Arm in the second quarter as part of the chipmaker's efforts to cut costs after suffering a loss of $1.6 billion last quarter.

According to reports, Intel said in a regulatory filing that it no longer holds the 1.18 million shares of Arm it held three months ago. Based on the average price of Arm shares over the same period ($124.34), the sale will raise about $147 million for Intel. After the sale, Intel no longer holds Arm shares.

The funds raised from the sale of Arm shares may be used to support Intel's expansion of AI chip development and foundry manufacturing capabilities and further improve its financial situation.

Prior to this, Intel released a disappointing second-quarter financial report earlier this month, showing revenue of $12.8 billion during the reporting period, a slight decrease of 1% from the same period last year, and a net loss of $1.6 billion, which is in stark contrast to the profit of $1.5 billion a year ago.

Faced with declining performance, Intel plans to "save itself" by reducing costs both externally and internally.

External measures include suspending dividends, while internal measures involve reducing operating expenses, including plans to implement large-scale layoffs, and more than 15% of employees are expected to be affected. The goal is to reduce non-GAAP research and development, marketing, general and administrative expenses to approximately $20 billion in 2024, and further reduce them to approximately $17.5 billion by 2025.

Intel also plans to reduce capital expenditures, with total capital expenditures expected to be controlled at $25 billion to $27 billion in 2024, and net capital expenditures to remain at $11 billion to $13 billion. These measures are designed to help Intel survive its current financial difficulties and adjust its business strategy to adapt to future market changes.

View more at EASELINK