Intel Corp. shares plummeted 8.5% after CEO Lip-Bu Tan’s cost-cutting focus raised concerns about the company’s tech edge. Tan plans to cancel some factory projects and take a more conservative spending approach, criticizing investments made by predecessor Pat Gelsinger. Intel’s future competitiveness and chip industry leadership are now in question.

Tan’s strategy includes rolling out advanced production technology only when customer commitment is secured, causing investor unease and a stock price drop to $20.70. Intel aims to keep manufacturing and product design together but confirmed plans to spin off its networking group. Earnings forecast for the third quarter is optimistic but margin and profit estimates were missed in the second quarter.

Intel is reducing capital expenditures and workforce, aiming to end the year with 75,000 employees, down 20% from the previous quarter. PC industry demand surge before tariffs hit helped boost revenue, but Intel is struggling to maintain market share and attract clients. The company must navigate economic uncertainties and shifting industry trends to remain competitive.

Read more at Yahoo Finance: Intel Slides After New CEO’s Comeback Plan Worries Investors