Intel CFO: Division responsible for Ohio plant remains on track; layoffs have dual purpose

NEW ALBANY, Ohio (WCMH) -- Intel's chief financial officer clarified updates for the division behind Ohio's Intel plant this month, including impending layoffs.

Dave Zinsner, executive vice president and CFO of Intel, spoke at a Global Technology, Media and Communications Conference on May 13. In his discussion, he addressed changes under new CEO Lip-Bu Tan and the future of Intel Foundry, the division responsible for the $28 billion Ohio One plant. See previous coverage of Intel's Ohio plant in the video player above.

“While it's not to where we were driving, when you look back, it's actually a fair amount of progress that we have made," Zinsner said.

Once the face of American semiconductor manufacturing, Intel announced its New Albany project in 2022, preparing to build two chip factories across 1,000 acres in Licking County in the largest private investment in Ohio history. Those plants were originally scheduled to be up and running this year, but financial turmoil contributed to a delay into the early 2030s. When Tan stepped into the role of CEO in March, it was unclear where he would take Ohio One and rumors of a buyout persisted.

Ohio's plant is still far from central to Tan's public plans, but Zinsner said he is committed to the Foundry business. Despite initial concerns that Tan could abandon the Ohio plant or Intel Foundry entirely, Zinsner said Tan isn't thinking about massive changes. Instead, Tan is focused on streamlining internal operations and addressing customer needs.

“We have lost talent at the company and we do need to rebuild that and the great thing about Lip-Bu is that he’s a magnet for talent,” Zinsner said.

Zinsner said he believes Tan’s biggest concern is a lack of execution, he said he will “flatten” the organization, which he has already done at the executive level. Tan has far more engineers and leaders reporting directly to him, and he hopes decision-making will be easier with less bureaucracy.

Part of this streamlining process involves significant layoffs, with Bloomberg reporting 20% cuts across the board and Tan confirming a mass firing will happen by the end of July. Although layoffs help with finances, Zinsner said cuts had less to do with cost reductions and more to do with restructuring and becoming more nimble.

“What he (Tan) wants is the lowest level of the organization to be closer to him so that he’s hearing the good, the bad, the ugly of what’s going on,” Zinsner said.

Zinsner, who served as co-interim CEO before Tan was selected, said the Foundry business behind Ohio's plant was in good shape. He said he was "highly confident" that Foundry will break even in 2027, positive news for Ohio's expensive plant.

Zinsner said many of the problems Intel Foundry faces stem from the makeup of the company. As a Foundry business, Intel wants to develop and manufacture semiconductors for external companies, many of whom compete directly with Intel's other half, Intel Products. Zinsner said that can make it difficult to earn trust as a Foundry.

"What we have to do is make sure they feel confident that IP is getting protected, but maybe more important that supply is getting protected, that we aren’t going to disadvantage their products in terms of supply,” Zinsner said.

Tan has a plan for that, too. Zinsner said Tan spends much of his time meeting with customers to hear what they need and earn trust. He recalled Tan had 22 meetings on a weekend once, trying to gather insight from customers.

Zinsner did not address the Ohio plant directly, and he also did not address any other developing manufacturing hubs. Construction continues at the Ohio One plant.