Recently, Intel CEO Pat Gelsinger announced major cost-cutting measures, with spending set to be cut by $10 billion by 2025 and 15,000 jobs cut. The company also withdrew from Arm, in which it held shares worth $146.7 million.

This is according to an official announcement on Tuesday, reports Reuters. The newspaper rightly points out the poor state of Intel shares. This year, the company has already lost 59 percent of its market value. This could put Intel in the crosshairs of activist shareholders who want to restore order.

Tip: Intel cancels innovation event and announces new processors elsewhere

Arm shares

Arm, in turn, is a hot potato when it comes to its (partial) ownership. It is considered a kind of “chip Switzerland” in the sense that everyone works with the company and adopts the Arm architecture (at least partially), but in recent years this concept has been questioned. Nvidia tried to take over the British company, but regulators shied away, fearing the move could hamper competition. Nvidia is still a shareholder, albeit with a modest number of shares.

The reaction to the earlier Intel decision seems to have neither despaired nor cheered the market. After a historically bad day on August 2, the biggest drop in value since 1974, the stock has remained relatively stable, albeit at its lowest level since 2013. The risks the company has taken, such as setting up Intel Foundry as a third-party chipmaker and adopting ASML’s high-NA EUV early, will only pay off in the long run – if they do at all.