New Intel CEO to Refocus Production and Cut Jobs

New Intel CEO Lip-Bu Tan will reportedly revamp its manufacturing processes and cut jobs at the middle management level. Intel Foundry and AI chip production were tipped to be top of Tan’s agenda, with the new chief also seeking improved efficiency.

Reuters reported Tan told staff last week the company would need to make tough decisions to turn its fortunes around, which could include job cuts. The company already cut around 15,000 jobs by the end of 2024, leaving it with about 109,000. Tan’s to-do list includes improving performance at manufacturing division Intel Foundry along with seeking new customers for the unit.

The division produces chips for companies such as Microsoft and Amazon. Intel is also expected to resume efforts around AI server chips, along with moving into new areas including software, robotics, and AI foundation models. Tan is a vocal critic of former CEO and board member Pat Gelsinger but noted some similarities in their turnaround strategies. Tan is also expected to find ways to improve chip yield processes.