Intel (INTC.US) Senior Shakeup: Three Top Executives to Retire
According to Zhitong Caijing APP, Intel (INTC.US) manufacturing business department will see three top executives retire soon. This is part of the new CEO Chen Lixiong's efforts to revamp this US chip manufacturer.
On Tuesday, Intel informed employees that Kaizad Mistry, company vice president of Technology Development, and Ryan Russell, company vice president of Design Technology Platform, will retire. Gary Patton, company vice president of the same organization and former IBM executive, will also step down.
The report also mentioned adjustments to the technology development team responsible for manufacturing process. Sources revealed that Intel plans to reduce its capacity planning teams and lay off some engineering teams.
Last week, Intel announced a plan to cut 15% of its workforce and reduce global employees to approximately 75,000 by the end of this year, which is part of Chen's comprehensive restructuring efforts.
The report pointed out that Intel also stated that its next-generation 14A manufacturing process depends on securing a new key customer. If not, it may pause or terminate development.
In a memo accompanying the company's financial report, Chen wrote: "The clear increase in Intel's 14A capital costs clearly shows we need significant external customers to ensure a reasonable return on investment. I will only invest when I'm confident such returns exist."
A report last Thursday indicated that Ericsson is negotiating with Intel to invest billions of dollars into its network and edge computing business (NEX). The news about possibly spinning off the NEX business came before Intel confirmed earlier this week that it plans to split its network and communication business into an independent company.