Intel Corp. (INTC) announced new additions to its leadership group in order to turn around its slide and stage a comeback in the AI chip offerings.
Intel shares have surged over 3% after the announcements.
The new executives
Intel has announced several significant additions to its leadership team. Greg Ernst, a sales leader with over two decades of experience at the company, has been appointed as the new chief revenue officer.
Furthermore, Intel is expanding its engineering leadership with the arrival of Srinivasan Iyengar, Jean-Didier Allegrucci, and Shailendra Desai, who are joining in crucial engineering roles.
Srinivasan Iyengar has been appointed as Senior Vice President and Fellow. In this capacity, he will head a new center of excellence for customer engineering and join Intel’s Executive Team.
Iyengar previously served at Cadence Design Systems, where he was responsible for global silicon engineering.
Jean-Didier Allegrucci is now Vice President of AI System on Chip (SoC) Engineering. His role will involve overseeing the development of various SoCs crucial to Intel’s future AI initiatives.
Allegrucci spent 17 years at Apple, where he managed the development of over 30 SoCs utilized in many of the company’s flagship products.
Shailendra Desai has been named Vice President of AI Fabric and Networking.
He will spearhead the creation of advanced SoC architectures for Intel’s AI GPUs and future roadmap plans.
Desai comes to Intel from Google, where he directed silicon engineering, architectural design, and platform solutions for several mobile SoCs.
Changes in leadership, job cuts
The changes in the leadership are part of the steps taken by the new CEO, Lip-Bu Tan, to turn the company around.
Since assuming the CEO role in March, Mr. Tan has prioritized revitalizing the chipmaker’s engineering capabilities.
He emphasizes that Intel must develop superior products more closely aligned with customer requirements.
Concurrently, the executive has also outlined plans to reduce the workforce and streamline management structures.
One of the pressing concerns for the company is reinventing its AI chips, which so far have failed to compete with Nvidia’s products.
The company also needs to find more customers for its substantial factory infrastructure.
Intel is reportedly planning to slash 20% of its workforce, as reported by Bloomberg.
The company is also looking to slash its operating costs to $17 billion in 2025 and $16 billion in 2026.
Intel in its Q1 results in April had reported numbers which beat the market’s expectations.
The chipmaker had reported a revenue of $12.67 billion against $12.3 billion expected.
However, the company had given weak guidance for the second quarter, citing weak demand due to growing uncertainty around global semiconductor demand, which the company says could trigger a broader economic slowdown.
Intel’s stock has gained 6% in the year to date, currently beating Nvidia’s 5% growth in the same period.
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