Intel is planning to separate its networking and communications unit into a stand-alone company and has begun the process of identifying investors, the chipmaker said on Friday, as new CEO Lip-Bu Tan looks to streamline its operations.

Intel CEO Lip-Bu Tan told employees in a staff-wide memo yesterday that the company plans to cut its workforce by roughly 15%—more than 25,000 jobs—aiming to end the year with about 75,000 employees worldwide. The cuts are part of the struggling chipmaker’s efforts to turn things around and compete in the booming AI market.

There are no more blank checks,” says new Intel CEO Lip-Bu Tan, as the company slashes jobs, restructures operations, and pivots toward AI and efficiency.

Intel shares sank 8% on Friday after the company warned of exiting chip manufacturing if it fails to secure a major customer, a potentially drastic move by the new CEO to cut spending and revive the struggling American icon.

Intel CEO Lip-Bu Tan, in comments delivered alongside his company’s second quarter earnings report, brought some clarity to Intel’s near-term manufacturing plans, but the big picture rema | Much of Intel's future plans around its foundry and AI strategies will depend on customer commitments and enabling "best customer outcomes.

Intel is going to end the year with a workforce that is over a fifth smaller than last year, it said on Thursday, and new CEO Lip Bu Tan presented a blueprint for a more cost-disciplined, streamlined chipmaker that would issue "no more blank checks.

Artificial intelligence companies are largely cheering President Trump’s “AI Action Plan” issued this week — no surprise, since it reduces regulations to make it easier for them to make money.

Intel is cutting costs and restructuring amid weak margins and mixed Q2 results, with long-term upside tied to AI. Find out why INTC stock is a buy.

Intel on Thursday confirmed its plan to spin off its Network and Edge Group in a memo to customers and said it will seek outside investment for the business unit.