Intel’s Gelsinger Promises Better Execution After Return From DC Lobbying Tour
Intel CEO Pat Gelsinger implicitly admits that he may have executed a backburner in recent months. “We’ll spend a little less time in Washington,” Gelsinger said in a statement last night to improve the company’s executions. This is a reference to recent lobbying for US CHIPS law. The result of disastrous earnings.
Regular readers will see clear evidence that buoyant Gelsinger appears around the world, zigzags around the world, often from the Far East to Europe, and then back to the United States within a few days. .. He has probably distracted, moved and traded from the practical engineering-focused management that was previously his hallmark. In a statement provided in response to the critical results yesterday evening, Gelsinger now promised to reduce visits to Washington and spend more time focusing lasers on its core business.
“So we’re still working on an ongoing design inventory, what to do, a lot of rebuilding, and that’s where much of my attention is focused.” Gelsinger said Of his plans for the future. “And now that we’re spending a little less time in Washington, this is our focus so that the team can make it great again.”
Gelsinger also took clear responsibility for the company’s poor performance in a prepared statement: “This quarter’s results were below the standards we set for the company and shareholders. We are better off. Have to. The biggest factor was the rapid and rapid decline of economic activity, but the shortage also reflects our own enforcement problems.[..].. (Emphasis has been added.)
Management is full of balance and compromise, and Gelsinger’s statement was that the balance between doing politics on behalf of Intel miles miles away from tech facilities and leading from the manufacturing floor was probably not optimal. It suggests that.
Gelsinger’s trip is necessary and very successful, and no one else in the company can claim that he was unable to achieve the transactions, grants, and partnerships he secured in a relatively short amount of time. Gelsinger now stays close to his home after a $ 76 billion U.S. chip law was passed by the Senate, similar funding was achieved in the EU, and recent important deals with MediaTek, TSMC and others. You may be able to.
Intel’s latest financial information was extraordinary for many wrong reasons. Perhaps you have already read our multifaceted coverage. Headline $ 500 million loss, 17% QoQ sales decline, 37% sharp drop to gross profit. In addition, this once hopeful technical impetus turned to $ 559 million in inventory amortization, putting the final nail in the Optane memory business casket.
You can expect Gelsinger’s simplified travel schedule to be a huge plus for the iconic PC chip maker. But in reality, the current macroeconomic wave can be too much for mere refocusing of business strategy to navigate well — it takes a multifaceted approach. We also need to regain the trust of consumers and businesses. This could recover very quickly if the government exits the energy crisis and the Ukrainian war ends.
