Intel's new CEO plans to completely change the approach to chip production and AI

Intel's newly elected CEO Lip-Bu Tan plans to carry out a major restructuring of the company's operations, including its approach to chip manufacturing methods and its artificial intelligence strategy, Reuters reported, citing people familiar with the matter.

One of the important steps that Tana plans is new cuts in the company. The layoffs will mainly affect middle management. In addition, the new CEO will review the approach to artificial intelligence, in particular, focusing on changing operations in manufacturing.

During a meeting with employees last week, Tana said Intel would have to make some "tough decisions," hinting at layoffs. Meanwhile, some industry experts say the problem with previous CEO Pat Gelsinger, who left in December, was that he was "too nice" and refused to make necessary layoffs.

In the near term, Tana wants to improve the performance of Intel Foundry, the manufacturing unit that makes chips for companies like Amazon, Microsoft and others. One of his strategies will be to aggressively acquire new customers. He also plans to revive Intel’s efforts to make chips for artificial intelligence and perhaps look beyond servers into new areas such as software, robotics and basic AI models.

"Lip-Bu will be spending a lot of time listening to customers, partners and employees as he comes on board and works closely with our leadership team to position the business for future success," an Intel spokesperson said in a statement.