Intels new CEO Lip-Bu Tan wants to revamp chipmaking, cut jobs: report

Intel’s incoming chief executive plans to revamp the embattled tech giant’s chipmaking operations and slash jobs to better compete with industry rivals, according to a report.Lip-Bu Tan, a former Intel board member who takes over Tuesday, will be focused on streamlining Intel’s manufacturing process to churn out more AI chips for clients like Nvidia, sources with knowledge of his thinking told Reuters.His plans also include staff cuts to the firm’s bloated middle-management layer, which he has argued slows down Intel’s decision-making process, the report said.Intel did not immediately respond to The Post’s request for comment.Intel rose 6.6% Monday morning.After Intel announced Tan’s appointment last week, he told employees at a town hall meeting that the company will need to make “tough decisions,” according to sources briefed on the meeting.Tan takes the reins from Pat Gelsinger, who was pushed out in December after three years at the helm.One criticism of Gelsinger was that he was “too nice,” according to semiconductor industry expert Dylan Patel.“He did not want to fire a bunch of middle management in the way they needed to,” Patel said.Stay up on the very latest with Evening Update.

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Never miss a story.Gelsinger did announce last August that the chipmaker would slash 15% of its massive workforce — about 15,000 jobs.Tan, 65, the former chief executive of chip design software firm Cadence and the head of a venture capital firm, appears ready to shake things up even further after months of disappointing earnings.The flailing company reported an annual loss of $19 billion in 2024 – its first since 1986 as it struggled to compete with major semiconductor rivals like AMD, TSMC and Samsung.Intel missed out on the demand surge for AI processors, losing market sha...