Intel Shares Drop 2.47% on $1.67 Billion Volume as Restructuring Under Tan Sparks Workforce Cuts and Strategic Shifts Trading 49th in Market Activity

On August 1, 2025, Intel (INTC) traded down 2.47% with a trading volume of $1.67 billion, ranking 49th in market activity. The stock’s decline followed a strategic overhaul under CEO Lip-Bu Tan, who announced the retirement of three senior executives overseeing manufacturing operations. Kaizad Mistry, Ryan Russell, and Gary Patton will depart, signaling a broader restructuring of the technology development group. Intel plans to reduce its manufacturing capacity planning team and engineering staff, reflecting a shift toward cost discipline and operational efficiency. The changes align with Tan’s goal to cut the workforce to 75,000 by year-end, a 31% reduction from 2024 levels.

Tan’s strategy emphasizes prioritizing customer-driven manufacturing investments, particularly for the next-generation 14A and 18A chip processes. Development of the 14A node hinges on securing a major client, with potential suspension if partnerships falter. Meanwhile, the 18A process may be reserved for in-house use, reversing earlier plans to license it externally. These adjustments underscore Intel’s pivot from speculative R&D to revenue-focused execution. The company also delayed its Ohio semiconductor plant and scaled back expansion in Germany and Poland, further streamlining capital allocation.

Internal reorganization includes expanding the role of Naga Chandrasekaran, who now oversees both manufacturing and technology development. Layoffs and reassignments within the technology development group highlight the scale of the restructuring. The exodus of key executives, coupled with uncertainty around 14A/18A timelines, has raised concerns about leadership continuity and execution risks. Intel’s second-quarter results, while showing $12.86 billion in revenue, revealed a 10-cent-per-share loss, underscoring the financial pressures driving these changes.

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