Intel Board Member Lip-Bu Tan Resigns Amid Chipmaker's Struggle With Cost Cuts

On August 19, 2024, Lip-Bu Tan informed the Board of Intel Corp INTC that he was resigning from the Board, effective immediately.

Tan attributed the departure as a personal decision based on a need to reprioritize various commitments.

Cadence Design Systems, Inc CDNS former chief Tan became Intel’s board member in September 2022 and part of Intel’s mergers and acquisitions committee, Bloomberg reports.

Intel reported a second-quarter topline decline of 0.9% year-on-year to $12.83 billion, trailing the analyst consensus of $12.94 billion. The chip designer disclosed a $10 billion cost-reduction plan, including plans to slash headcount by over 15%.

Goldman Sachs analyst Toshiya Hari considered the cost reduction plan insufficient for a turnaround.

Intel aims to ship chips for over 100 million artificial intelligence personal computers by 2025, including over 40 million in 2024. 

Intel stock plunged 39% in the last 12 months and trades at a forward price-to-earnings multiple of 17.39x.

Price Action: INTC shares traded higher by 2.91% at $20.69 at the last check on Friday.

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