Intel's newly appointed CEO, Lip-Bu Tan, is wasting no time in taking drastic measures to revitalize the struggling semiconductor giant. According to Reuters, Tan is considering sweeping changes to the company's chip manufacturing and artificial intelligence (AI) strategies, including a significant reduction in middle management staff and a revamped approach to chip production.

Tan, who rejoins Intel on Tuesday, has already set the tone for his tenure by warning employees that he will need to make "tough decisions" to get the company back on track. This comes as no surprise, given Intel's recent struggles to maintain its market dominance in the face of intense competition from rivals like AMD and NVIDIA.

The decision to cut middle management staff is likely aimed at streamlining the company's operations and reducing bureaucracy, which could help Intel respond more quickly to changing market trends. Additionally, a revamped approach to chip manufacturing could help the company regain its footing in the highly competitive semiconductor market.

Tan's return to Intel marks a significant turning point for the company, which has been struggling to find its footing since the departure of former CEO Brian Krzanich in 2018. Tan previously served on Intel's board but exited in August 2024 due to clashes with former CEO Pat Gelsinger. His appointment as CEO last week was seen as a move to bring in a fresh perspective and new leadership to the struggling company.

While Intel declined to comment on the specifics of Tan's plans, industry analysts are watching the developments closely. "Intel needs to make significant changes to remain competitive in the market," said analyst Patrick Moorhead of Moor Insights & Strategy. "Tan's willingness to make tough decisions is a positive sign, but it remains to be seen how these changes will impact the company's bottom line."

The implications of Tan's plans extend beyond Intel's walls, with potential ripple effects on the broader technology industry. As one of the largest and most influential players in the semiconductor market, Intel's fortunes have a significant impact on the entire ecosystem. If Tan's efforts are successful, it could have a positive impact on the industry as a whole, driving innovation and competition.

As Intel embarks on this new chapter under Tan's leadership, one thing is clear: the company is in for a period of significant transformation. Whether these changes will be enough to turn around Intel's fortunes remains to be seen, but one thing is certain – the industry will be watching closely.