Intel CEO Lip-Bu Tan announces 15% job cuts and cancels expansion plans as the company refocuses on core products, cost control, and execution.

"We are making hard but necessary decisions to streamline the organization," writes the tech giant's CEO in a memo to employees.

Intel (NASDAQ:INTC) provided optimistic revenue guidance for the upcoming quarter after delivering second-quarter revenue results that exceeded analyst forecasts. However, the semiconductor giant warned that earnings took a hit due to write-downs connected to scaling back plans for new chip manufacturing facilities.

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.

Investors will be questioning the chip maker’s strategy for the future more than worrying about its second-quarter earnings results, Bernstein analysts say

The chipmaker plans to reduce headcount from 96,400 to 75,000 employees amid restructuring and steeper Q3 losses.

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.

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.