Lip-Bu Tan, a seasoned figure in the high-tech industry, has stepped down from Intel's board of directors after two years of service, according to the company's filing with the U.S. Securities and Exchange Commission. His departure, effective immediately, comes at a critical time for Intel as the company faces financial difficulties and implements major organizational changes that involve laying off some 15,000 or more employees.

"I am grateful for the opportunity to serve on the Intel Board of Directors," said Lip-Bu Tan after informing Intel about his decision on Monday. "This is a personal decision based on a need to reprioritize various commitments and I remain supportive of the company and its important work."

SeekingAlpha reports that Intel's stock dropped 6.1% following Intel's announcement of Lip-Bu Tan's departure.

Lip-Bu Tan, a former CEO and the current executive chairman of Cadence, a leading supplier of electronic design automation tools and IP, j oined Intel's board of directors in 2022 after the company announced its IDM 2.0 efforts to become a significant contract maker of semiconductors.

Lip-Bu Tan's investment company, Walden International, has invested in semiconductor, alternative energy, and digital media companies and startups in the U.S. and Asia, including Ambarella, Creative Technology, S3 Graphics, and Sina Corp. Sina owns Weibo (a microblogging site in China) and four other business lines. Given Lip-Bu Tan's experience at Cadence and his investment company, he was a treasured board member at Intel.

Intel's board has 12 directors, led by chairman Frank D. Yeary, who spent his entire career in the financial industry. In fact, among the board of directors of Intel, two have an academic background in electrical and computer engineering and experience in a semiconductor company; one has worked in the PC industry; and two—Pat Gelsinger and Stacy Smith—are either existing or former executives at Intel. Others have worked outside of the semiconductor industry.

Intel's stock tumbled by about 30%, erasing around $39 billion in market capitalization in just a few days, from late July to early August. On July 31, Intel's market cap was $130.86 billion at the close of the NYSE. After reports of massive layoffs, it dropped to $123.96 billion on August 1. Following Intel's financial report and a substantial $1.6 billion loss, the valuation fell further to $91.86 billion. Intel's current market cap at press time is $88.43 billion, highlighting that the company has lost over half its market value since the beginning of the year.