Intel slashes VP headcount by 55%, flattens management under CEO Lip-Bu Tan

Intel has reduced its vice president ranks from approximately 450 to 200 and cut management layers from 12 to six as part of a sweeping restructuring under CEO Lip-Bu Tan. CFO David Zinsner attributed years of slow execution and delayed products to a deep-rooted cultural problem involving excessive veto power and a lack of transparency within the organisation. Zinsner noted that the company's Intel 18A process yields are progressing ahead of schedule, while 14A risk production is targeted for 2027. Gross margins have also improved, climbing into the low 40s, signalling early signs of financial recovery.