Intel is implementing changes to address its struggles and remain competitive in the tech industry. The company reported a loss of $821 million in the first quarter of 2025 and plans to reduce its workforce in the coming months. Intel CEO Lip-Bu Tan stressed the need to revamp the company’s culture.
“We are seen as too slow, too complex, and too set in our ways — and we need to change,” he said. Tan promised bold actions, including a flatter executive team, greater empowerment of engineers, streamlining teams, reducing the number of meetings, and cutting down on meeting attendees. He also called for a return-to-office policy requiring some employees to spend four days per week on-site starting September 1.
“Our competitors are lean, fast, and agile — and that’s what we must become to improve our execution,” Tan said.
Intel’s layoff strategy explained
“I’m a big believer in the philosophy that the best leaders get the most done with the fewest people.”
While acknowledging that the changes will reduce Intel’s workforce, Tan emphasized the need to balance reductions with retaining and recruiting key talent.
Reports suggest the layoffs could exceed 20% of Intel’s global workforce of about 109,000 employees. Intel, historically one of Arizona’s largest employers, has a significant presence in Chandler with two campuses and a microchip manufacturing facility on the 700-acre Ocotillo campus. The downsizing effort is part of a strategy to streamline operations, reduce inefficiencies, trim payroll costs, and refocus on an engineering culture.
Tan, a veteran in the semiconductor industry, took over as CEO on March 18, replacing the two interim co-CEOs. He aims to simplify Intel’s business operations and drive transparency and accountability throughout the company. The job cuts are expected to begin in the second quarter and proceed rapidly over the next several months as part of Intel’s cost-cutting strategy to save $17 billion in 2025 and $16 billion in 2026.
The company is taking decisive steps to boost collaboration and position itself for future success in the competitive tech industry.
Image Credits: Photo by Slejven Djurakovic on Unsplash
