Overview

• Intel plans to lay off over 20,000 employees this week, marking its largest workforce reduction to date under new CEO Lip-Bu Tan.
• The restructuring follows years of declining sales and lost market share to AMD in PCs and Nvidia in AI, with Intel posting its fourth consecutive quarterly revenue drop this week.
• Tan's strategy includes flattening the leadership structure, reducing bureaucracy, and centralizing key chip groups to accelerate decision-making.
• The company recently sold a 51% stake in its Altera programmable chip unit to Silver Lake Management as part of a broader effort to divest non-core assets.
• Intel's AI roadmap remains uncertain, with no competitive flagship product yet to challenge Nvidia's dominance in the booming AI market.