Intel’s newly appointed CEO, Lip-Bu Tan, has set an ambitious tone for his tenure, outlining a vision for “The New Intel” that prioritizes innovation, customer satisfaction, and a renewed engineering focus. However, his initial address to employees has sparked mixed reactions, particularly as he hinted at tough decisions ahead without providing concrete details on strategic shifts.

In a company-wide email sent on March 12, 2025, Tan acknowledged Intel’s storied history but cautioned that past achievements do not guarantee future success. He underscored the rapid pace of change in the semiconductor industry and the fierce competition Intel faces.

“The pace of change continues to accelerate, and the competition is intense. You understand this better than anyone, and I know it has been a tough few years for all of you and your teams,” Tan wrote.

While expressing confidence in Intel’s ability to turn its business around, he made it clear that significant transformations lie ahead. He described his leadership philosophy as rooted in three core beliefs: staying humble, working hard, and delighting customers.

“Intel plays an essential role in the technology ecosystem, both in the U.S. and around the world. And, together, I’m confident we can turn our business around,” Tan stated.

Tan, the first external CEO in Intel’s 57-year history, emphasized that Intel will be an “engineering-focused company” under his leadership. He stressed the importance of pushing for the best products, listening to customers, and holding the company accountable for its commitments. This shift aligns with expectations that Tan will take a hard-nosed approach to restructuring Intel’s operations to compete more effectively with rivals such as AMD, NVIDIA, and TSMC.

One of the key takeaways from his message was his commitment to rigorous internal evaluation. “We will do regular deep dives to assess our progress. In areas where we have momentum, we need to double down. In areas where we are behind the competition, we need to take calculated risks to disrupt and leapfrog,” he said.

While Tan’s appointment has been well-received by investors and financial analysts, employees have expressed concerns about potential job cuts and further cost reductions. Tan reportedly stepped down from Intel’s board last year due to frustration with inefficiencies within the company, and his return as CEO has fueled speculation that he may implement aggressive restructuring measures, including layoffs.

Adding to employee unease, Tan’s introductory video call drew criticism after he appeared wearing a shirt from his former company, Cadence Design Systems, rather than Intel-branded apparel. During the call, he warned of “difficult decisions” ahead, leaving many employees uncertain about the future of their roles at Intel.

Despite these concerns, Tan remains optimistic about Intel’s potential. He called on employees to embrace a winning culture and work collaboratively to reestablish Intel as a world-class product company and foundry.

“We have a chance to do something special together. In many ways, we are the founders of ‘The New Intel.’ We will learn from past mistakes, use setbacks to strengthen our resolve, and choose action over distraction to reach our full potential,” Tan wrote.

While Tan’s vision for Intel is clear in principle, employees and industry watchers are now waiting to see the concrete steps he will take to execute his strategy. The next few months will be critical in determining whether Intel can successfully reinvent itself under his leadership.