Intel’s new CEO Lip-Bu Tan signals sweeping layoffs and fightback

Intel’s new CEO, Lip-Bu Tan, takes charge on March 18, 2025, replacing interim leaders after a bruising year. Known for turning Cadence into a tech powerhouse, Tan’s transition as Intel CEO promises deep layoffs, beyond the 15,000 cuts of 2024, a cultural overhaul to reclaim agility, and a fierce push against rivals like Nvidia. With Intel stock rising 11% on the news, the semiconductor giant braces for a high-stakes reset. HR eyes the fallout as Tan’s foundry plan and cost-slashing vision unfold.

A major shift is underway for one of America’s semiconductor titans. Intel has appointed Lip-Bu Tan as its new CEO, effective March 18, 2025, ushering in what promises to be a transformative era for the company. The Intel leadership change, announced this week, marks the end of a turbulent interim period under co-CEOs David Zinsner and Michelle Johnston Holthaus, who stepped in after Pat Gelsinger’s exit.

Lip-Bu Tan was appointed chief executive officer of Intel Corporation in March 2025. He also serves on the company’s board of directors. (Image Credit: Intel)

Tan, a veteran of the chip industry and a former Intel board member, takes the helm amid financial bleeding, competitive erosion, and a stock that has been battered but is now showing signs of life. For HR watchers, the Intel CEO replacement signals more than a new face at the top. It’s a harbinger of deep organizational upheaval, with layoffs looming large.

Who Is Intel’s New CEO, Lip-Bu Tan? A Heavyweight with a Sharp Edge

Tan’s resume reads like a masterclass in tech turnarounds. As CEO of Cadence Design Systems from 2009 to 2021, he took a middling player and turbocharged it, doubling revenue and sending its stock soaring over 3,200%. Lip-Bu Tan’s background isn’t just external success – he is an insider too, having served on Intel’s board until August 2024, when he stepped down citing frustration with a “bloated workforce” and a culture he saw as sluggish. Now, as the new Intel CEO in 2025, Tan returns with a mandate to slash inefficiency and refocus a company that lost $18.8 billion in 2024 and ceded ground to rivals like Nvidia and AMD.

In his first move, Tan penned a letter to Intel’s 100,000-strong workforce on March 12, vowing to make it an “engineering-focused company” that listens to customers and delivers on promises. The subtext? A leaner, meaner Intel is coming. For all we know, the new Intel CEO’s transition won’t be gentle.

Layoffs: The Axe Falls Again

If Tan’s past is any guide, layoffs are inevitable. Intel was already bleeding jobs before his arrival, with a 15% workforce cut. Roughly 15,000 layoffs were announced in 2024 to save $10 billion by year’s end. But whispers from Tan’s boardroom days suggest he thinks that’s not enough. The Intel CEO transition news has reignited speculation of a deeper purge, potentially hitting 20-25% of staff. This signals another around of 5,000 to 10,000 layoffs at Intel over the next year. Middle management, long a target of Tan’s ire for clogging decision-making. It is now in the crosshairs, alongside underperforming units like Intel’s faltering consumer GPU push.

Why the ruthlessness? Tan’s analysis leans on a simple truth: survival demands agility. At Cadence, he trimmed fat to fuel growth, and he’ll likely wield the same playbook here. The Intel semiconductor business, once a juggernaut, has been outpaced in AI chips and manufacturing prowess. Tan’s “deep dives” into operations as promised in his employee note, will likely pinpoint where the axe falls next. It could possibly be timed with Q1 2025 earnings in April. For HR teams, the Intel CEO leadership change means bracing for morale dips and retention battles as engineers, vital to any rebound, weigh their options.

Foundry Strategy: Double Down or Divide?

Tan inherits Gelsinger’s contentious Intel foundry strategy. This is a bid to make Intel a contract manufacturer for other chipmakers, not just its own designs. It’s a plan Tan reportedly clashed over, pushing for sharper customer focus. Now as Intel CEO, Lip-Bu Tan is signaling he’ll stick with it but tweak the execution. The Intel CEO’s foundry plan could see accelerated investment in U.S.-based plants, leveraging manufacturing edge over rivals like TSMC. But there’s a twist: industry buzz and Tan’s history suggest he might split the foundry and product arms. This could be in the form of a spinoff or sale to sharpen focus and unlock value.

This isn’t idle chatter. Tan’s Cadence tenure showed a knack for doubling down on winners and shedding losers. If the Intel CEO effect on shares hinges on bold moves, a foundry split could be his ace, though it risks alienating staff already rattled by change.

Stock Surge, But a Tough Road Ahead

Markets love a decisive leader. Intel stock news today shows shares jumping 11% after the announcement, a rare bright spot after a 60% plunge in 2024. Intel stock after CEO change reflects hope that Tan’s magic touch can lift Intel’s $96 billion market cap closer to Nvidia’s $3 trillion stratosphere. Yet the Intel stock reaction isn’t blind optimism; it’s a bet on Tan navigating a minefield of debt, layoffs, and a tech landscape where Intel’s late to the AI party.

For HR, the Intel CEO impact on stock matters for it is a barometer of stability. A sustained rise could ease talent retention; a stall might fuel an exodus. As one X user put it, “Tan’s got the chops, but Intel’s a bigger beast than Cadence. Layoffs will test his grit.”

A Cultural Reckoning

Beyond numbers, Tan’s promising a cultural reset. His letter evokes teamwork, rooted in his athletic days, and empowerment, hinting at a flatter, faster Intel. The Intel CEO transition aims to ditch the risk-averse malaise that’s drifted from founder Andy Grove’s “only the paranoid survives” mantra. But with morale “at rock bottom” (per X posts from staff), Tan’s challenge is Herculean. Can he cut deep while inspiring a workforce to fight back against competitors?

What’s Next?

Lip-Bu Tan’s arrival as Intel appoints him as CEO is a pivot point. Intel layoffs will sting, but they’re part of a broader CEO leadership change to reclaim dominance. His first 100 days through June 2025 will set the tone, you can expect a refined cost plan, foundry clarity, and a cultural push. For HR leaders, the takeaway is stark: adaptability is non-negotiable. Tan’s not here to tinker, he’s here to rebuild. Whether Intel stock rises CEO-led or falters, one thing’s clear: the chip giant’s workforce, and its future, are in for a wild ride.

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