Intel Corp.'s (NASDAQ:INTC) new CEO, Lip-Bu Tan, is overhauling the chipmaker's manufacturing operations, cutting thousands of jobs, delaying projects and witnessing the retirement of key executives as part of a sweeping reset.
Three Senior Intel Executives Step Down Amid Restructuring
Three senior Intel executives are set to retire amid a broad restructuring of the company's manufacturing division, according to a Reuters report on Thursday.
Corporate Vice Presidents Kaizad Mistry and Ryan Russell of the Technology Development Group, along with Gary Patton, VP of Design Technology Platform and a former IBM executive, will depart the company, the report said.
The changes come as Tan implements a plan to streamline operations and boost efficiency.
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Tan Targets 31% Workforce Reduction By Year-End
Tan, who became CEO in March, is aggressively downsizing. He aims to reduce Intel's global workforce to 75,000 employees by year-end—a roughly 31% drop from the 108,900 reported at the end of 2024.
"I know the past few months have not been easy," Tan said in a memo to employees last month. "We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company."
Foundry Cuts, Global Moves And Delayed Ohio Plant
As part of the shake-up, Intel is cutting 15% to 20% of jobs in its Foundry division, reducing manufacturing capacity planning teams and relocating some assembly and testing operations from Costa Rica to Vietnam and Malaysia.
Construction of Intel's long-awaited semiconductor facility in Ohio will also be "further" delayed, Tan confirmed. Additionally, Intel is pausing expansion plans in Germany and Poland.
14A And 18A Chip Ambitions Now Tied To Customer Demand
Tan's aggressive restructuring signals a shift in Intel's strategic priorities as it struggles to regain leadership in chip manufacturing. His plans include a more disciplined approach to manufacturing investment—particularly around the next-gen 14A and 18A processes.
Intel said development of the 14A process will depend on securing a significant customer. Without one, it may suspend or cancel the project. The 18A process, meanwhile, may be reserved for in-house use only, despite earlier plans to offer it to external clients.
Intel reported better-than-expected second-quarter revenue of $12.86 billion, but missed earnings estimates with a loss of 10 cents per share.
Price Action: Intel shares dropped 2.65% during Thursday’s regular session and slipped a further 0.71% in after-hours trading, according to Benzinga Pro.
Benzinga's Edge Stock Rankings show that INTC continues to exhibit downward momentum across short, medium and long-term timeframes. More detailed performance insights are available here.
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