The Chief Executive Officer of Intel in Intel plans to rebuild the chipmking operations of the embarrassing giant and reduce jobs to better compete with industry rivals, according to a report.
Lip-Bu Tan, a former member of the Intel Board who undertakes Tuesday, will focus on regulating the Intel production process to have more chips for clients like Nvidia, sources of his opinion said Reuters.
His plans also include staff cuts in the firm’s swollen middle management layer, for which he has argued that he slows down the Intel decision -making process, the report said.
Intel refused to comment.
Intel shares increased 6.6% on Monday morning.
After Intel announced the appointment of Tan last week, he told employees at a municipal meeting that the company would have to make “difficult decisions”, according to sources informed about the meeting.
Tan gets the brakes from Pat Gelsinger, who was postponed in December after three years at the top.
One criticism of Gelsinger was that he was “very beautiful”, according to the semiconductor expert Dylan Patel.
“He did not want to light a middle management gang in the way they should,” Patel said.
Gelsinger announced last August that Chipmaker would reduce 15% of his massive workforce – about 15,000 jobs.
Tan, 65, the former chief executive of the design software firm Chip Cadence and the head of a venture capital firm seems ready to shake things up even after a few months of disappointing profits.
Flailing reported an annual loss of $ 19 billion in 2024 – its first since 1986 as it fought to compete with top semiconductor rivals such as AMD, TSMC and Samsung.
Intel lost the question for the processors of him, losing the market share against Nvidia, as he initially produced only chips for himself. The company has since entered the production of chips for customers.
Tan wants to improve the performance at Intel Foundry, the manufacturing arm of the firm that produces chips for Microsoft and Amazon, aggressively cheating on new clients, sources said.
The company will also resume plans to produce chips that can strengthen the servers, and look at future development on software and robotics, according to the report.
Gelsinger had previously discovered a plan of turns seeking to turn the company into a manufacturer of contract chips that TSMC could receive.
The former -ceo pledged tens of billions of dollars to build factories in the SH.BA and Europe to increase chip production, but was forced to scaling those plans between a decline in question.
The War Company was one of the first to receive funding from the act of former President Joe Biden’s Chips, receiving $ 2.2 billion in federal grants earlier this year.
Last month, President Trump pledged to abolish the act of chips.
As a board member, he was a loud critic of Gelsinger, who failed to provide customer service at the same level as the TSMC rival, sources said.
Tan argued that Intel’s work culture had lost ethics “only paranoid survival” located by Andy Grove, who served as the chief executive of the firm from the late 1980s to the late 1990s, according to sources.
After months of reviewing the Intel production process in a special role, thus presented some of his ideas aboard the company last year, but she refused to follow them, according to sources.
He suddenly resigned from the board in August.
Now, it is expected to focus on ways to improve Intel production so that it can offer more chips as it works towards its first chip inside the house somewhere this year.
Intel is unlikely to produce a new chip until at least in 2027, it is said in industry sources and a person known for the progress of Intel.
It will also take over the company immediately after its work power decreased by about 15,000 to about 109,000 at the end of last year.
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