Intel Plans to Slash Expenses

Intel confirmed rumors that it plans to reduce the number of employees. New layoffs are part of an overall effort to cut expenses this year and streamline its operations.

While recent media reports indicated that the company could lay off about 20% of its staff, CEO Lip-Bu Tan and CFO David Zinsner stated that it is too soon to determine the exact number. In his first earnings report since taking over as CEO in March, Tan stated his biggest discovery so far is that the company needs to fundamentally transform its culture and the way in which it operates.

He outlined a plan to cut operational and capital expenses, remove middle management layers, and rebuild its engineering talent pool by promoting from within and bringing back critical lost talent. “There is no way around the fact that these critical changes will reduce the size of our workforce,” he said in a letter to employees on Intel’s website. “As I said when I joined, we need to make some very hard decisions to put our company on a solid footing for the future.”

Tan stated on the earnings call that his first step includes flattening Intel’s leadership team and having all critical product, manufacturing, and G&A functions that are spread out across two to three layers report directly to him. Starting in 3Q25, Intel will mandate a four-day-per-week return to office policy. “I know first-hand the power of teamwork, and this action is necessary to re-instill a more collaborative working environment, improving efficiency and boosting innovation,” Tan explained.