Intel is entering a new chapter under its new CEO, Lip-Bu Tan. In a bold move, Tan announced a wide range of changes to make the famous chipmaker faster, leaner, and more innovative once again. His plans include cutting jobs, reducing management layers, and pushing employees to return to the office more often.
In a letter to employees, Tan explained that Intel has become too slow and too focused on team size rather than results. He was surprised to find that many managers were being judged by the size of their teams – something he plans to change immediately.
“I believe the best leaders get the most done with the fewest people,” Tan wrote.
To fix this, Intel will remove unnecessary layers of management. Some teams currently have eight or more levels of managers, creating delays and confusion. By cutting through this bureaucracy, Tan hopes to speed up decision-making and make Intel more competitive.
While Tan did not reveal exactly how many jobs will be cut, reports suggest that up to 20% of Intel’s 108,900 employees could be affected. These changes will start in the second quarter of 2025 and continue for several months.
Tan made it clear that although these layoffs are painful, they are necessary to ensure Intel can invest more in its engineering teams and new technologies, especially in areas like artificial intelligence.
Intel had already cut about 15,000 jobs eight months ago, but Tan says the company still needs to bring costs down further. His goal is to save $1.5 billion in operating expenses over the next two years.
Along with the restructuring, Intel is changing its remote work policy. Starting September 1, 2025, employees will be required to work four days a week in the office, up from the current three-day policy. Tan believes that more face-to-face collaboration will lead to better ideas, faster decisions, and a stronger company culture.
Despite the tough news, Tan’s message was also full of hope. He reminded employees that Intel was once seen as the world’s most innovative company — and there’s no reason it can’t be again.
“This is our chance to pull off a comeback that will be studied in business schools for generations,” he said.
Tan is urging the Intel team to stay focused on what matters most: building great products, satisfying customers, and delivering strong results. He admitted that the road ahead will be hard but said he believes the team has the strength to succeed.
