The chipmaker will reportedly eliminate 20% of its staff
Investors cheered the move, sending shares up over 7% in morning trading. The stock was still up 5% shortly after midday. The layoffs are the first major actions undertaken by chip veteran Lip-Bu Tan, who took the helm as Intel’s CEO earlier this year.
With the layoffs, Tan aims to “streamline management and rebuild an engineering-driven culture,” according to Bloomberg, which first reported the news.
“As CEO, my number one priority has been spending time with customers,” Tan said at the Intel Vision 2025 conference in Las Vegas last month.
“Under my leadership, Intel will be an engineering-focused company. We will listen closely and act on your input. Most importantly, we will create products that solve your problems and drive your success,” Tan said.
But analysts need more convincing that the new CEO can effect a turnaround.
Baird analyst Ted Mortonson said on a recent podcast that “Intel is somewhat of a sinking ship right now,” noting that the legacy chipmaker is “having a lot of trouble” in its foundry business.
Mortonson also said that Intel has fallen behind in AI.
“When you talk about Gen AI, you need to be there, and Intel is not,” Mortsonon told Yahoo Finance (APO).
Trump’s team raised the idea of a deal between the two firms in recent meetings with officials from TSMC, and they were receptive, Bloomberg reported, citing a person familiar with the matter.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.