Lip-Bu Tan, Intel’s New CEO, took over the role on Tuesday, March 18. Within his first day as Intel’s new CEO started to make “Hard Decisions” to revive the company. Tan plans to cut some roles, especially in middle management. Both chip manufacturing methods and AI strategies will see change. Let’s explore Tan’s plans.
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Lip-Bu Tan’s “Hard Decisions” to Implement Layoffs.
Lip-Bu Tan was appointed Intel’s new CEO and took over the role on Tuesday, March 18. He has started making “Hard decisions”, to revive the company. In these hard decisions, one could be eliminating some roles, most probably in middle management, which Tan believes is a barrier, Moneycontrol reported.
Reuters reports, that during a hall meeting following his CEO appointment last week, Lip-Bu Tan informed employees the company will need to make some “tough decisions”, according to two people briefed on the meeting.
The report further adds that semiconductor Industry specialist Dylan Patel unveils the truth about Intel’s former CEO Pat Gelsinger, who quit the company in December last year. Dylan says, “He did not want to fire a bunch of middle management in the way they needed to”, he was “Too Nice”.
Tan Wants To Boom Intel’s Chip Business’s Growth.
Intel is known for its chip manufacturing for its products and also makes chips for other companies such as Nvidia. So, Tan wants to focus on Growing Intel’s chip manufacturing business, changing the manufacturing methods significantly. He wants to make this side of business stronger attracting new customers.
According to a Reuters Report, Tim-Bu Tan aims to boost the performance of Intel’s manufacturing arm, Intel Foundry, which makes chips for companies like Microsoft, and Amazon, attracting new customers aggressively.
Tan even wants to produce chips that power AI servers and look to areas beyond servers in several areas such as Software, Robotics, and AI foundation models.
Significant Change in Artificial Intelligence Strategies.
As this is a new era of AI going on, tech companies can’t survive without expanding themselves into this revolution. So, Lip-Bu Tan wants to make Intel enter into AI, making chips to power AI servers. This move will contribute in turn around significantly.
Reuters reported that it will also restart plans to produce chips that power AI servers and look to areas beyond servers in several areas such as software, robotics, and AI foundation models.
The goal is to move to an annual release schedule of AI chips, similar to Nvidia, but that will take years. It will be at least 2027 before Intel can develop a compelling new architecture for the first AI chip, according to three industry sources, and one person familiar with Intel’s progress, the report adds.
$19Bn Loss, First Time In Company’s History: Tan’s Decisions.
Intel is currently facing a significant loss, that is because it failed in AI, and stood behind in mobile chips manufacturing. In 2024 Company reported a $19 billion loss, titling it the first loss in the company’s history since 1986.
To fight back against this loss, Lip-Bu Tan’s decisions above will play a crucial role either in revamping or turning around Intel for the future. Cutting some roles will help Intel to save unnecessary expenses, and will cut the bloated layers of the employees.
His decision to enter in AI landscape with his chips, powering AI servers is key, as everywhere AI has become a craze. Every tool is full of AI, which needs data to act and chips come in high demand to fulfill this purpose.
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