In a bold move to shake up Intel’s struggling business, newly appointed CEO Lip-Bu Tan is wasting no time implementing major changes. Taking the helm officially on Tuesday, Tan has already hinted at tough decisions ahead, including potential job cuts and a push for faster decision-making—aimed at revitalizing the once-dominant semiconductor giant.
Slashing Middle Management to Boost Efficiency
During a recent company-wide meeting, Tan made it clear that Intel’s bureaucratic structure is slowing the company down. To streamline operations, he is reportedly targeting middle management roles, which he believes are hindering productivity and delaying innovation. Industry insiders claim that former CEO Pat Gelsinger took a softer approach, avoiding difficult decisions—a misstep Tan seems determined to correct.
Reviving Intel’s Chip-Making Business
One of Tan’s key priorities is strengthening Intel Foundry Services (IFS), the company’s contract manufacturing arm. Traditionally, Intel only manufactured its own chips, but in recent years, it has started producing custom silicon for clients, including Nvidia. Tan wants to aggressively expand this business, aiming to secure more partnerships and establish Intel as a major player in the foundry market, directly challenging TSMC and Samsung.
Doubling Down on AI and Emerging Tech
With competitors like Nvidia and AMD dominating the AI chip market, Intel has fallen behind. Tan intends to reverse this trend by revamping Intel’s AI initiatives, including a renewed focus on AI-powered software, robotics, and smart systems. This could mark a significant shift as Intel looks to compete more aggressively in the AI race.
$19 Billion Loss in 2024 Sparks Urgency
Intel’s downward spiral over the last decade has been marked by missed opportunities, including failing to capitalize on the smartphone chip market and lagging in AI development. The fallout? A massive $19 billion loss in 2024—the company’s first annual loss since 1986. This staggering financial blow appears to be the catalyst for Tan’s aggressive reform strategy.
What’s Next for Intel?
While Intel’s future remains uncertain, Tan’s bold leadership style and willingness to make hard decisions could mark a turning point. As the company faces mounting pressure from AI-focused rivals and declining market share, all eyes are on Intel’s next move under its new, no-nonsense CEO.
