Stock has to get low enough that the whole company becomes a takeover target, even if that is from a PE firm with the intent of disassembling it.
Then Intel can move on, likely as a Foundry.
There would be up to 30% layoffs, but face it those jobs are gone no matter what at this point. The product divisions can be sold (at a discount from the current valuation), to various parties interested in what remains of x86 as a technology.
The profits from that can be used to cover the capital needed to transition to a real Foundry. There is no other way to fund that transition now that the only way Product groups are reliant on TSMC to be competitive, as TSMC outsourcing leaves little profit margin.
The company has simply run out of runway to transition to Foundry based on existing Product group profitability.