According to the latest Wall Street update on Intel, the semiconductor company lost 1.6% shares. This stock drop was preceded by the company’s shareholders’ meeting on Tuesday, in which an incentive plan was approved to attract and retain new employees and give compensation to the CEO, Lip-Bu Tan. 

Ironically, in April, the company planned to reduce operational and capital expenses in the coming months after its first quarter earnings, which gave mixed results. The company was expecting to reduce $17 billion in operational expenses and targeted a $18 billion reduction in capital expenses in 2025. 

Tan to Get Stock Award 

The shareholders’ meeting was the first for Tan. In this meeting, the shareholders decided to give a stock award of $42 million, depending on the performance of Intel’s stock. As Tan is aiming to expedite its AI projects, there is a high chance of the stock rising, eventually rewarding Tan. 

Rejected Proposals 

During this meeting, three shareholder proposals were rejected. These proposals required Intel to 

  • Reevaluate its operations in Israel
  • Report on charities 
  • Give shareholders the right to act by written consent 

Restructuring at Intel

After Tan took the office of CEO, Intel is facing leadership restructuring in its core domains. In April, Sachin Katti was promoted to chief technology officer and artificial intelligence. In addition to this promotion, Intel’s data centre and AI chip group, along with the personal-computer chip group, were instructed to report directly to Tan. 

Intel Lay-off in 2025

On April 23, Intel was also reported to lay off 20% of its workforce. This initiative was aimed at Intel’s broader strategy to refocus on an engineering-driven culture, meanwhile reducing bureaucratic inefficiencies and streamlining operations. Now the company is planning to retain new employees by giving them incentives.