Outlook Business Desk
Intel's New CEO Lip-Bu-Tan is set to implement tough decisions including layoffs and a major renovation of the company's AI strategy as he takes charge this week, according to Reuters.
According to sources, during a recent town hall meeting Tan cautioned employees that tough decisions would be necessary and unavoidable.
According to a Reuters report Intel's decision to eliminate unnecessary roles stems from concerns over inefficiencies in its decision-making process. While middle management is expected to be a key focus, the layoffs are aimed to accelerate decision making and enhance Intel overall performance.
In 2024, Intel reported a $19 billion loss, its first since 1986. These figures underscore the urgency for significant changes.
Intel's recent challenges such as missing out on the smartphone chip market and falling behind in AI advancements have led to substantial financial losses.
Lip-Bu-Tan's appointment triggered a stock rally driving a 24% increase. This surge added $22 billion to Intel's market value making it the top performing stock on the Philadelphia Stock Exchange.
With Tan at the helm, Intel is set to prioritise its core business chip manufacturing. The company has recently expanded into manufacturing chips for other tech firms, including Nvidia
According to reports, Lip-Bu-Tan will dedicate significant time to engaging with customers, partners, and employees as he transitions into his role. He will collaborate closely with the leadership team to steer the company toward future success.