Intel's newly appointed CEO, Lip-Bu Ta, after stepping into his role, has made clear his intent to reshape the company, reported ET Now, on Tuesday, March 18.
Intel’s newly appointed CEO, Lip-Bu Tan, has stepped into the role with a clear intent to reshape the company’s structure. With Intel grappling with financial difficulties and stiff competition in its chip-making and Artificial Intelligence (AI) sectors, Tan’s arrival marks a turning point.
Sources, including a Reuters report, indicate that streamlining operations is a top priority for Tan, who began his tenure on Tuesday, March 18, 2025, and hinted at significant changes during an employee meeting.
Layoffs on the horizon
Tan has signalled during the meeting that "tough decisions" lie ahead, with reports pointing to potential layoffs, particularly targeting middle management.
This move is aimed at addressing inefficiencies in Intel’s decision-making process, which Tan views as a barrier to agility in the fast-paced tech landscape.
Unlike his predecessor, Pat Gelsinger, who faced criticism for avoiding hard choices, Tan appears ready to act decisively. The focus on cutting excess roles is seen as a strategy to restore Intel’s competitive edge, following a 15,000-employee cut in 2024.
Reviving the 'chip-making' ethics
Under Tan’s leadership, Intel is set to increase its foundational strength, which is chip manufacturing.
Historically focused on producing chips for its own products, Intel has, in recent years, expanded into contract manufacturing for clients like Nvidia.
Tan plans to amplify this shift by attracting new customers and enhancing production capacity. Strengthening Intel Foundry, the company’s manufacturing arm, is a key pillar of his vision, to reclaim Intel’s dominance in the semiconductor industry.
AI innovation as growth engine
Tan is also eyeing artificial intelligence (AI) as a critical area for Intel’s resurgence.
The company is lagging behind rivals like Nvidia in AI chip development, a gap which Tan aims to close by revitalising Intel’s AI initiatives.
This could involve advancements in software, robotics, and intelligent systems. To fuel this pivot, resources may be redirected from non-strategic areas, potentially leading to layoffs outside core growth sectors, as Intel seeks to capitalise on the booming global AI market.
Learning from past setbacks
Intel’s recent challenges, including missed opportunities in the smartphone chip market and a slow AI response, resulted in a staggering 19 billion dollar loss in 2024, the company’s first since 1986. These financial strains have highlighted the urgency for bold action, shaping Tan’s aggressive approach.
A vision for long-term success
Tan’s strategy blends immediate restructuring with a forward-looking outlook.
An Intel spokesperson highlighted his intent to engage closely with employees, partners, and customers, stating, “Lip-Bu will be spending a lot of time listening to customers, partners, and employees as he comes on board and works closely with our leadership team to position the business for future success.”
