He New Intel CEO, Lip-Bu Tanis about to take the reins of the company, for which it has change plans significant. And not only for their chips manufacturing methods or for their strategies related to artificial intelligence. To relive the company, according to Reuters, it canintense restructuringwith multiple layoffs among the intermediate controls of the company.
Apparently, the restructuring will begin with there: staff cuts (especially intermediate managers), renew Intel manufacturing operations and drastically change its AI strategy. In an encounter with Intel employees who has celebrated before assuming his position, he has already warned them that it would be necessary to take «hard decisions«.
The manager is not going to be as “friendly” as the previous CEO of Intel, Pat Gelsinger, was considered. According to several sources, the character of Gelsinger was also a problem for the company for drastic decision making, since he did not want to fire all the intermediate controls of which it was necessary to dispense.
Tan, former CEO of the Software company for Chips Cadence design, and investor in technology companies, was part of the Intel Board of Directors until last August, when it resigned. Until then he was known for openly criticizing the way Gelsinger executed the plans he had for Intel.
Meanwhile, Intel’s 2024 fiscal year has been the first in which he has communicated losses since 1986. Nothing less than 19,000 million dollars. So you have to get to work immediately to turn the situation around. Thus, at least, their investors see it.
In the short term it will focus on improving the performance of its manufacturing division, Intel Foundry, which is dedicated to the manufacture of chips for other companies that design their own chips, such as Microsoft or Amazon. The financial recovery of the company is linked, at least for now, for this area to function. For now he has already confirmed that he wants to maintain control over factories, which continue to work apart from the design area, both financial and operational.
Among other measures that will probably take it is to try to attract new customers, and it is likely to adopt an aggressive strategy to achieve it. In addition, it will start plans to produce chips for AI servers, and explore roads that go beyond servers in areas such as software, robotics and foundational models of AI.
The goal of so is to move on an annual planning of the launch of the AI chips, similar to how Nvidia does, but it will not be something that gets immediately. In fact, it can take years to achieve it. At least it will not be until 2027, when Intel is expected to develop a new architecture for an AI chip.
In addition, it is expected to invest a long time listening to the needs of customers, partners and employees when they reach the Board of Directors again. He will also work closely with the leadership team to position the business to improve their future perspectives.
At the moment, it already has its own vision, after months of reviewing the Intel chips manufacturing process from its entry into the company’s board of directors at the end of 2023 with a supervision role. During the review he already expressed frustration against the company’s culture, which for him had lost the thrust he had when Andy Grove was his CEO.
He also concluded that Intel decision making had slowed down because his template is inflated. So exposed some of his ideas to the Board of Directors of Intel last year, but They rejected put them into practicewhich led him to resign by differences with them. We will see what they think is in command.
