Intel CEO Lip-Bu Tan announces major restructure, confirms job cuts and new work from office mandate

India Today

01-05-2025

Intel is preparing for a major internal shake-up as its newly appointed CEO, Lip-Bu Tan, sets out to transform the tech giant's operations. In a candid letter to employees following the company's Q1 2025 results, Tan confirmed that Intel will reduce its workforce and overhaul its organisational structure. The company, which has been facing growing challenges in recent years, will now shift focus back to its engineering roots, cut down on bureaucracy, and increase productivity across the board. This marks the first major restructuring effort since Tan took over as CEO last month.advertisementIn the detailed memo, Tan expressed satisfaction with Intel's Q1 performance, but stressed that much more work needs to be done. 'We need to confront our challenges head-on and take swift actions to get back on track,' he said. Highlighting internal feedback from employees and customers, Tan admitted that Intel is currently seen as 'too slow, too complex and too set in our ways.'To address these issues, the CEO has laid out several key changes, starting with a return to an engineering-first mindset. 'We need to get back to our roots and empower our engineers,' Tan said, confirming that core engineering roles have been elevated to the executive level. He also revealed plans to reduce operating expenses and capital spending in order to invest more in innovation.
One of the most significant steps is Intel's plan to flatten its organisation. With some teams reportedly eight or more layers deep, Tan said the company needs to eliminate unnecessary bureaucracy and empower top performers. 'I've been surprised to learn that, in recent years, the most important KPI for many managers at Intel has been the size of their teams,' he stated. 'Going forward, this will not be the case.'advertisementThese structural changes will unfortunately lead to job losses. 'There is no way around the fact that these critical changes will reduce the size of our workforce,' Tan confirmed. The job cuts are expected to begin in Q2 and continue over the coming months.Alongside restructuring, Intel will also reduce administrative burden by eliminating non-essential meetings and streamlining internal processes. OKR requirements and Insights reporting will be made optional, and the company aims to simplify time-consuming corporate tasks such as training and documentation.Another major change is coming to Intel's hybrid work policy. From September 1, employees will be required to work from the office at least four days a week. 'When we spend time together in person, it fosters more engaging and productive discussion and debate,' Tan wrote.The CEO ended his message on an optimistic note, stating, 'We have opportunities ahead that most people don't get in their careers. I'm talking about the opportunity to fundamentally reinvent an industry icon.'