Why Intel board member resigned !!
One of the important board member of Intel Lip-Bu Tan, who is a veteran industrialist of semiconductor have resigned from Intel board member recently. He said it was his personal decision and his priorities. He also said that that he remained supportive to the company and its important work. There were some differences came across him and CEO Pat Gelsinger and other working members of the company according to sources.
2 years ago Cadence Design company, which is a chip software company , the CEO of which joined as Intel board member for planning the growth of the company and restore it's rank as the leading global chipmaker and expanding the chip manufacturing overseas. The board expanded responsibilities hold by Tan . Overtime Tan become frustrated with huge work barden, contract manufacturing risk management and work culture of the company.
How will it affect Intel market
However the resign of the important board member will leave a vacuum in the company. Intel has hired investment bank Morgan Stanley in order to manage and handle the situation as per the sources report. It's not still the right time to comment on Intel market fluctuation following the resignation as company is trying to tackle the situation with some alternatives. But it's not clear how much effective will be the strategies taken by the company. Tan's exit will surely leave a vaccum in the chip industry which is already very much competitive and hugely populated.
Intel's announcement of layoffs 15% workforce to cut down cost :
In the recent 2 years, for the second round Intel announced layoffs of more than 15% of workforce in order to minimise the expenditure this August. As per the report it happened because of the tension that was building up between Tan and intel's other board members. Tan always wanted to cut down the middle managers who are not part of intel's main engineering field. As per the Tan the company has been flooded with a huge workforce which is making challenge and barrier to the companies growth.
Gelsinger, who took over on 2021 as a turnaround plan he had added extra number of employees to the company with a number of 20,000. Which caused increased cost burden on intel.
Tan was frustrated with the board as the board members were not aligned with his recommendations for making chip manufacturing business more customer-centric and to remove unnecessary middle manager's and extra workforce. These all conflicts of interests lead to the resignation of Tan from the intel's board, as per sources. Intel has continued to build new factories across Europe in Ohio Arizona.
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