One month after reporting a Net loss of $1.6 billionannouncing layoffs affecting 15,000 peopleand stating that he wants reducing costs by 10 billion dollarsIntel has a plan to turn things around.

Intel CEO Pat Gelsinger wrote Monday message to employees that Intel will take concrete steps to become profitable and competitive. The letter came after Gelsinger met with Intel's board last week for three days to find a way forward.

“There has been no shortage of rumors and speculation about the company, including last week's Board of Directors meeting, so I'm writing today to provide some updates and outline what's coming next,” Gelsinger wrote.

^{Intel CEO Pat Gelsinger. Photo by Kira Hofmann/Photothek via Getty Images}

The first change is to make Intel Foundry, Intel's chip-making business, a subsidiary and separate it from the rest of the company.

Related: 'Tough day for all of us:' Intel CEO announces layoffs affecting 15,000 people

The move will allow Intel Foundry to be more independent, have separate funding sources and report earnings on its own outside of the larger Intel organization.

Intel also plans to cut its real estate holdings by two-thirds by the end of the year and sell part of its stake in semiconductor company Altera to cut costs. Intel is also focusing on its AI strategy and announced a partnership with Amazon Web Services to develop new AI chips. Intel stock jumped 8% on Monday after the news.

“All eyes will remain on us,” Gelsinger wrote in the letter. “We have to fight for every inch and execute better than ever before. Because that's the only way to appease our critics and deliver the results we know we're capable of.”

Related: How Nvidia CEO Jensen Huang transformed a graphics card company into an AI giant: 'One of the most remarkable business pivots in history'

Intel faces increasing competition from the likes of Nvidia, which has pushed it out of the graphics card space. Intel's GPU market share dropped from 4% in the first quarter of 2023 THE effectively 0% in the first quarter of 2024.

Bloomberg analysts predict that Intel will make $52 billion in revenue this year, or 70% of what it brought in two years ago. They say Intel lost ground by not being able to quickly capitalize on the AI ​​boom.

Intel was down over 53% year-to-date at the time of writing, but up over 16% in the last five days.