Intel is making significant changes, announcing plans to cut 20% of its workforce, which translates to about 21,000 jobs. This decision comes as new CEO Lip-Bu Tan seeks to streamline management and foster a more engineering-driven culture. Investors responded positively to the news, pushing shares up over 7%. Tan emphasized at the Intel Vision 2025 conference that his main focus is on customer interaction, stating, “Under my leadership, Intel will be an engineering-focused company.”

However, analysts remain cautious. Baird's Ted Mortonson described Intel as "somewhat of a sinking ship," highlighting challenges in the foundry business and a concerning lag in the AI sector. He pointed out, “When you talk about Gen AI, you need to be there, and Intel is not.” Additionally, there are reports of TSMC considering a controlling stake in Intel’s factories, suggested by former President Trump. These developments underscore the urgency for Intel as it navigates its future in an increasingly competitive landscape.
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