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 will remain an anchor investor in the stand-alone company, which produced $5.8 billion in revenue in 2024.

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.

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.

In a way, Intel just reported its best quarter in years. But given the harsh realities the chip maker is facing, that’s no longer enough. Strong shipments of personal computers by manufacturers lookin

If the rumors are to be believed, Intel may be gearing up for a major apology to gamers in the form of a suite of gaming-specific CPUs. Intel has suffered through multiple crises, a CEO ouster, sweeping layoffs,

Intel is cutting tens of thousands of employees, cutting investment around the world, and moving away from entire businesses too. After shutting down its automotive chipmaking business and spinning out its RealSense computer vision business,