About Intel

Intel is entering a pivotal phase under its new CEO Lip-Bu Tan, who has launched an aggressive restructuring plan aimed at revitalizing the company’s competitiveness in the semiconductor market.

One of the most significant changes is a planned workforce reduction of over 20 percent, which means more than 21,000 jobs will be cut. The move is intended to reduce bureaucracy and create a more nimble, engineering driven organization. This shakeup reflects Tan’s commitment to eliminating middle management layers that he believes have slowed innovation and decision making. Reuters and TechCrunch both reported on the scale and rationale behind this decision.

To support this shift, Intel is also revamping its leadership structure. Key business units such as data center, AI, and PC chips will now report directly to the CEO. In a notable move, Sachin Katti has been named Chief Technology and AI Officer. He will oversee Intel’s AI strategy, product development, and Intel Labs, reflecting the company’s increasing focus on AI as a growth area. Details on the leadership overhaul were outlined in this Reuters article.

Another major step in the transformation is the partial spinoff of Altera, Intel’s programmable chip division. Intel is selling a 51 percent stake in the business to private equity firm Silver Lake for $4.46 billion, valuing the unit at $8.75 billion. This strategic divestment will allow Intel to concentrate on its core businesses while still benefiting from Altera’s growth. Raghib Hussain, formerly with Marvell Technology, will take over as CEO of Altera starting May 5. More on this transaction is available from Reuters.

Looking ahead, all eyes are on Intel’s first quarter 2025 earnings report, which is scheduled for release on April 24 after the market closes. Analysts expect revenue to decline 3.4 percent year over year to $12.3 billion, with net income dropping sharply to just $56 million. This will be the first earnings release under Tan’s leadership and could provide early indications of how well the restructuring efforts are taking hold. Investopedia has more on what to expect.

With bold leadership changes, significant cost cutting, and a sharpened focus on AI and core operations, Intel is clearly positioning itself for a reset. The coming months will be crucial in determining whether these moves translate into long term stability and renewed market strength.

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