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Three senior executives in Intel’s (NASDAQ:INTC) manufacturing operations are going to retire, Reuters reported, as new CEO Lip-Bu Tan carries out changes to revamp the U.S. chipmaker.
On Tuesday, Intel informed staff that corporate vice presidents in the technology development group, Kaizad Mistry and Ryan Russell, would retire. In addition, Gary Patton, corporate vice president at the company’s Design Technology Platform organization and a former IBM (IBM) executive, would also leave, the report added.
Intel did not immediately respond to a request for comment from Seeking Alpha.
Intel also talked about changes to the technology development group, which is responsible for creating manufacturing processes. The company intends to reduce its manufacturing capacity planning team and reduce a part of its engineering team, the report added citing people with knowledge of the matter.
Intel declined to comment on the changes, as per the report.
Last week, Intel said it intends to cut 15% jobs and plans to end the year with a global headcount of around 75,000 as a part of sweeping restructuring under Tan.
Intel had also said that its next-generation 14A manufacturing process depends on securing a new, significant customer otherwise it could suspend or terminate development, the report noted.
“The increase in capital costs at Intel 14A makes it clear that we need both Intel Products and a meaningful external customer to drive acceptable returns on our deployed capital, and I will only invest when I am confident those returns exist,” said Tan in a memo released along with the company’s earnings’ results.
On Thursday, it was reported that Ericsson (ERIC) is in discussions with Intel to invest hundreds of millions of dollars in its networking and edge business, known as NEX. News of a potential investment in the NEX spin comes after last week Intel confirmed plans to spin off its networking and communications business as a standalone company.