Intel to Spin-off Venture Capital Arm in Strategic Overhaul

Intel Corporation (NASDAQ: INTC) has announced its decision to spin-off its venture capital unit, Intel Capital, as the company seeks to streamline operations and reduce costs. This move comes amidst efforts to re-establish Intel's leadership in the technology sector and is part of a broader strategy designed to improve the company's efficiency and asset value.

Intel Capital, founded in 1991, has been a significant player in the venture capital landscape, managing over $5 billion in assets and investing more than $20 billion in over 1,800 companies globally. The separation is expected to be completed in the second half of 2025, with Intel maintaining a position as an anchor investor.

This strategic restructuring aligns with Intel's aim to cut approximately 15,000 jobs, about 15% of its workforce, as part of a cost-cutting strategy to save $10 billion by 2025. Additionally, Intel plans to suspend its stock dividend, redirecting funds towards business investments and simplifying its portfolio.

The restructuring was instigated following a significant decline in the company's market valuation under the leadership of former CEO Pat Gelsinger. His tenure saw Intel's share price fall from around $68 to $19.20 since February 2021. After Gelsinger's departure in December 2024, David Zinsner and Michelle Johnston Holthaus have taken over as interim co-CEOs.

In conclusion, Intel's decision to spin-off Intel Capital marks a pivotal phase in its strategic plan to refocus its operations and financial structure. By reducing costs and reorganizing its asset portfolio, Intel aims to regain its competitive edge in the rapidly evolving technology landscape. The company anticipates that these changes will facilitate greater efficiency and improve overall business performance.