Intel’s new CEO reportedly plans big shakeup for manufacturing division as “tough decisions” to be made
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Intel has seen its fortunes dip over the past year or so. Many at the company will no doubt be hoping that new CEO Lip-Bu Tan will be able to turn its fortunes around. He certainly has big plans, according to new reports.
According to Reuters, new Intel CEO Lip-Bu Tan is going to be making big changes to Intel's manufacturing methods and strategies for artificial intelligence. The report from Reuters obtained the information from two people described as ‘familiar with Tan's thinking'.
Intel’s new CEO is reportedly restructuring the company
According to the report, Tan's ambitions include a radical restructuring of the company's manufacturing operations and staff cuts. The staff cuts will supposedly be targeted at ‘slow-moving and bloated' middle management. According to Reuter’s sources, the CEO told employees that “tough decisions” have to be made.
Tan also plans to improve the performance of Intel's manufacturing division, Intel Foundry, which makes chips for companies such as Amazon and Microsoft. Part of this strategy involves attracting new customers along with plans to produce chips suitable for applications such as robotics and AI models.
Lip-Bu Tan has yet to give any interviews, and Intel so far has only had this to say: “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.”
Team Blue has not been on a winning streak for a while. Its consumer-grade processors have lost out in performance and popularity as chips like the AMD Ryzen 7 9800X3D dominate the market. The debacle with the degrading 13th and 14th Gen Raptor Lake CPUs obviously didn't help either. Meanwhile, Intel Arc GPUs remain less popular than the competition, though the series has found a small niche in an entry-level graphics card market, so it’s not all bad news.
Ex-Intel executive Raja Koduri blamed a culture of “learned helplessness” for many of the current woes of the company. Perhaps Tan can finally set Intel on the road to recovery with these reported reforms.
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