An Industry Veteran Quits Intel’s Board After Developing Differences Over The Company’s Contract Manufacturing Strategy And Its “Bureaucratic Layers”
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The mayhem at Intel's corporate headquarters seems endless, with board members leaving, mass layoffs, a stringent cash conservation strategy that has now seen dividends slashed and winning investments - such as those in ARM Holdings - dumped unceremoniously, and a stock price that is in a tailspin. What's more, even Intel now expects no improvements until at least 2027.
For the recently concluded quarter, Intel failed to meet the consensus expectations of analysts for its top-line and bottom-line metrics in Q2 2024, and compounded this failure by posting underwhelming results for the key DCAI segment, which indicates that it is not managing to effectively leverage the secular AI-focused tailwind.
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To further aggravate matters, Intel missed its own guidance for the just-concluded quarter's gross margin by a wide shot and guided to further sequential weakness ahead.
To conserve precious liquidity, Intel recently slashed its dividend and announced another mass layoff, to the tune of 15,000 employees, which constituted 13.6 percent of its workforce of around 110,000 at the start of the year. This follows the 5 percent layoff that the company implemented just last year.
Semiconductor Industry Veteran Lip-Bu Tan Quits Intel's Board
This brings us to the crux of the matter. Lip-Bu Tan, a high-profile board member of Intel, has now resigned, as per the reporting by Reuters.
Officially, Tan cited his "various commitments" as the stimulus behind his exit, asserting that he remained "supportive" of Intel's turnaround strategy. Privately though, Tan his purportedly voiced a litany of grievances.
To Tan, Intel appears a bloated mess with inertia-inducing layers of bureaucracy, including an army of middle
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