Intel to cut thousands of jobs under new CEO
Engineering is once again central to Intel’s strategy.
Intel’s recently appointed CEO, Lip-Bu Tan, has confirmed plans to reduce the company’s workforce in response to declining revenue and operational inefficiencies.
Tan emphasised that while the first quarter showed signs of improvement, there are no ‘quick fixes’ to restore the company’s competitive edge.
His strategy focuses on simplifying Intel’s corporate structure, empowering engineers, and eliminating unnecessary bureaucracy. He revealed that many internal teams operate with excessive management layers, which he believes slows down progress.
Tan criticised a culture where managerial success was measured by team size rather than output. The CEO plans to reverse this by rewarding lean and efficient leadership.
As part of his overhaul, thousands of job cuts are expected to begin in the second quarter, although no official figures were given.
Reports suggest the number could reach up to 21,000 roles, following 15,000 redundancies already made in August 2024. Alongside the layoffs, Tan is aiming to reduce administrative work and cut down on unproductive meetings.
He is also pushing for a partial return to office, requiring employees to be on-site four days a week from 1 September. Tan believes face-to-face collaboration will foster faster decision-making and strengthen internal relationships, key components in his mission to build a more agile and focused Intel.
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