Is Intel on the right track?

Today's WSJ featured an article about Intel's restructuring plan. As i was reading through it everything fell into the formula for improving the results of underperforming company:
Reviewing costs, cutting personnel where necessary, overall trimming spending by $1B per year. There only surprising thing was this:

"anything with a bracket on it" -- a reference to the practice of putting parentheses around numbers in income statements to indicate a loss.

That includes such divisions as flash memory a Digital Home group. While i have not done enough research to figure out viability of those businesses i do know one thing: Intel makes their money in processors. Intel is suffering from increased competition from AMD in microprocessors. Wouldn't that be the first and foremost area you would want to improve if you are a microprocessor company?

Intel's operating margins in that segment are still very impressive 36% according to their latest annual report. But there is a chance that they could be much much better....

The text of the original article from WSJ could be seen here.