Intel Corporation is implementing drastic measures to remain competitive in the chip industry, including cutting thousands of jobs. The company announced that it would reduce its workforce by over 15%, a move aimed at curbing costs and streamlining operations.

In the second quarter, Intel sold its 1.18 million share stake in British chip firm Arm Holdings, according to a regulatory filing on Tuesday. This sale is estimated to have generated approximately $146.7 million, based on Arm’s average stock price between April and June.

Intel is pivoting towards the development of advanced AI chips, an area where it has lagged behind competitors like Nvidia. This strategic shift includes suspending its dividend to reallocate resources towards AI chip development and enhancing its manufacturing capabilities for hire.

The push under CEO Pat Gelsinger to expand Intel’s contract manufacturing business has led to increased costs and tighter profit margins, necessitating significant cost-cutting measures. Despite these challenges, Intel aims to regain its technological edge, which has been lost to industry leader Taiwan Semiconductor Manufacturing Company (TSMC).

Benchmark Co. analyst Cody Acree commented on the sale of Arm Holdings shares, stating, “This appears consistent with the restructuring plan and renewed focus on liquidity and efficiency outlined by Gelsinger in the last conference call.”

As of the end of June, Intel reported holding $11.29 billion in cash and cash equivalents, with total current liabilities amounting to around $32 billion. The company’s stock has experienced a significant decline, losing over 59% of its value this year and dropping 26% on August 2nd after the dividend suspension announcement. Intel’s stock remained nearly flat in extended trading on Tuesday.