cutting employees by selling off profitable divisions is not employee cuts that are of any benefit.
All it does is weaken revenues and weaken an already too weak bottom line while giving the company more money to burn. Cutting employees that went along with unprofitable managed services contracts does help and is the kind of thing they need to keep doing. what they also need to do though is cut employees without cutting ANYTHING and simply demand greater productivity and efficiencies from their workforce. This companies revenue per employee is the weakest in the industry and by U.S. tech companies standards..has them having 15k + too many employees. Selling submarine will only serve to provide them cash to continue on with that wasteful excess. It might buy them time but it's not buying anything else.
The unit is very profitable, with double-digit margins it should be very easy to sell and get a good price for it. Selling something that is very profitable should bring in the very needed cash for ALU to keep operating on. What is the next unit that will be sold. I here the IP unit looks pretty good to be sold off.