Intel: Intel’s new CEO Lip-Boo Tan is behind these tough decisions. He has taken over the reins of the company at a time when the company is lagging behind its competitors, especially in the fast-growing artificial intelligence (AI) field.
Intel Job Cut: Intel, one of the world’s largest computer chip makers, has been going through a difficult phase for the past few years. Many changes have been seen in the company recently. Lip-Boo Tan was made the new CEO. The hope is that some miracle happens and the company gets back on track. Amidst all this, CEO Lip-Boo Tan has taken many tough decisions. The company has announced that it will lay off about 24,000 employees this year, which is about one-fourth of its total employees by the end of 2024. This news came during Intel’s second quarter 2025 earnings report.
According to The Verge report, Intel will now focus on making itself smaller and more efficient. As part of this strategy, the company has canceled its major factory projects in Germany and Poland. In Costa Rica too, the company is shutting down some of its operations and transferring it to Vietnam. This decision is likely to result in the loss of jobs of about 2,000 employees in Costa Rica.
CEO Lip-Boo Tan took tough decisions
The man behind these tough decisions is Intel’s new CEO Lip-Boo Tan. He has taken over the reins of the company at a time when the company is lagging behind its competitors, especially in the fast-growing artificial intelligence (AI) sector. Tan admitted that Intel had spent too much money building new factories without properly estimating the demand for chips. Tan said in a call with investors, “I don’t believe in building things and expecting customers to come. Now we will build what people really need”.
Tan also said that he would personally review all major chip designs in the future, so that past mistakes could be avoided. The company says more changes will come soon, including new leadership for its data center division and a better plan to compete in the AI field.
The company has suffered huge losses but is preparing for the future
This big change is costing the company a lot. Layoffs and restructuring will cost about $2 billion and the company is still in loss. Intel has lost $2.9 billion this quarter, while it has earned revenue of $12.9 billion. However, some of Intel’s businesses are doing well. Its data center unit, which powers servers and cloud services, has grown. But chips made for normal computers are not selling as before. Still, Intel says it is on track to release new laptop chips by the end of this year and by 2026.
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