Intel's CEO will reportedly present a cost-cutting strategy to the board, and may'slice away unnecessary businesses'. Ouch

Intel has had a difficult year. Intel has had a tough year. Chip crashing problems, dismal financial results and mass layoffs are all contributing to the company's decline.

Sources have told Reuters that Pat Gelsinger, the CEO, and other key executives will announce a plan this month to the board of directors, detailing ideas on how to turn around its fortunes, including proposals to'slice off unnecessary business and revamp capital expenditure.

Bloomberg reported last week that Intel had no plans to split and sell its foundry. This is not true, according to the source. The plan is still not finalised and could change before its presentation at the mid-September board meetings.

Intel's design-and-manufacturing businesses have been separated. But even if it keeps the foundry, there are still potential businesses that Intel can trim to reduce its losses. Altera, a programmable-chip manufacturer acquired by Intel in 2015. It is believed to be a target, as Intel was thought to have considered spinning out the company via an IPO, and selling a part of its stake at a later date.

Intel's finances could be bolstered by selling Alterea to another chip manufacturer, since it bought Alterea at a price of $16.7 billion. Intel's stock price had fallen by 60% in the past year before it began to rise after reports that it might consider scrapping factory projects following disappointing financial results published in August.

Pat Gelsinger, speaking at a Deutsche Bank Conference last week, spoke candidly about Intel's recent challenges and referred to the markets' reaction to recent steps taken to address them.

"It has been a tough few weeks...we have been working hard to resolve the issues.

"We were determined that we would present a clear picture of where we stood, as well as some of the steps we needed to take for the next phase in our strategy. The market's response was not positive.

"We described a series of cost reductions. I can tell you that most of them are already well underway. We realize, like everyone else in the industry, that we need to be nimble, agile, and act quickly. This is a highly competitive market and business, and that's why we took the steps we did when we built it."

Intel's new plan will be revealed in due course, as well as which parts of its business could be cut back to improve its finances and maintain investor confidence. Intel may need to make bold decisions and take strong steps to get back on track.