Intel Corporation, a global leader in semiconductor manufacturing, is undergoing a major transformation under the leadership of CEO Lip-Bu Tan, who officially took charge in March 2025. The restructuring is aimed at refocusing Intel’s strategy to adapt to new industry dynamics, primarily emphasizing artificial intelligence (AI), high-performance computing, and next-generation semiconductor solutions.
Leadership Changes and Strategic Realignment
As part of the company’s ongoing strategic shift, Intel announced the departure of its Chief Strategy Officer, Safroadu Yeboah-Amankwah, on June 30, 2025. In the aftermath of his departure, the company elevated Sachin Katti, a well-respected figure within Intel, to the position of Chief Technology and AI Officer. Katti, who has been with the company for more than a decade, will now lead Intel’s innovation and AI strategies, reinforcing the company’s commitment to becoming a driving force in next-gen computing and AI.
This leadership realignment comes at a crucial time, as Intel seeks to recalibrate its business to meet the growing demand for AI-powered technologies. Tan, who has been in the CEO role for just a few months, is focusing on reducing operational complexity and steering Intel toward its core strength—leading-edge computing.
Workforce Reduction and Department Closures
Intel has also made the difficult decision to reduce its global workforce by 20% starting mid-July 2025. In its first round, Intel will lay off 107 employees at its headquarters in Santa Clara, with further cuts expected globally. These layoffs are part of Intel’s broader effort to improve operational efficiency and align its resources with high-growth strategic priorities, including AI, data centers, and high-performance computing. While this will have a significant impact on Intel’s workforce, the company has emphasized that these cuts are necessary to position the company for future growth.
The restructuring plan also involves the closure of Intel’s automotive chip division, which will be phased out in the coming months. This decision reflects Intel’s desire to streamline its business and prioritize areas where it sees the greatest potential for long-term growth. The automotive chip division, once a significant player in the autonomous vehicle sector, will cease operations, and most of its employees will be let go. However, Intel has stated that it will honor all existing customer commitments before shutting down the division.
Intel’s Focus on AI and Data Centers
Intel’s decision to focus on high-performance computing, AI, and data centers reflects its response to the rapidly evolving technology landscape. AI applications, from machine learning to autonomous systems, are becoming integral across industries such as healthcare, finance, and cloud computing. Intel’s pivot toward these areas will help the company maintain its competitive edge in an increasingly digital world.
By reallocating resources and emphasizing these core areas, Intel aims to re-establish itself as a leader in the semiconductor industry while adapting to the growing need for advanced computing solutions. The company’s efforts to focus on AI-driven hardware will enhance its role in the global data center market, where demand for powerful computing solutions is skyrocketing.
Intel’s future success lies in its ability to execute this transformation effectively. If the company can navigate this challenging transition while investing in future technologies, it may reclaim its position as a leader in the rapidly changing semiconductor industry.
