Intel's Strategic Overhaul: Navigating Through Challenges

Intel Corp. is undertaking significant workforce reductions and strategic realignments as it battles to regain its industry standing under the leadership of new CEO Lip-Bu Tan.

In a memo to employees, Tan detailed plans to reduce Intel's workforce to 75,000 by year-end, a 31% drop from last year's 108,900. This move is part of a broader strategy involving layoffs, project cancellations in Germany and Poland, and a shift of operations from Costa Rica to larger sites in Vietnam and Malaysia. Tan emphasized the necessity of these changes to increase efficiency and accountability.

Intel, a pioneer in the PC revolution since 1968, has struggled to keep pace with technological shifts, especially against rivals like Nvidia in the booming AI market. As of market close Thursday, Intel's valuation stood at $98.71 billion, dwarfed by Nvidia's $4.24 trillion.

(With inputs from agencies.)