- Intel didn’t lay off 20,000 workers after all, but layers of managers are at risk
- CEO Lip-Bu Tan has also asked teams to remove unnecessary meetings
- Workers will need to be in the office four days a week, up from three
Despite recent rumors that it was planning to lay off thousands of workers, cutting its headcount by around one-fifth, Intel did not announce such measures as part of its most recent quarterly results.
However, not all jobs are safe, with the company’s new CEO Lip-Bu Tan criticizing existing and inefficient hierarchical structures, and alluding to future job cuts.
In an open letter to all company employees, Tan also confirmed Intel would be requiring workers to return to the office, adding that managers should remove unnecessary meetings to streamline processes and boost productivity.
Intel workers are in for a change
“We are seen as too slow, too complex and too set in our ways,” Tan said, after hearing from customers. The new leader, who has been in post since March 18, 2025, revealed ongoing plans focused on “flattening the organization,” including removing “organizational complexity.”
Tan explained that many teams are eight or more layers deep, and the constant upstream reporting can slow teams down significantly. Intel’s execs have been tasked with “tak[ing] a fresh look at their respective orgs,” which is corporate speak for removing some of the unnecessary layers.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” Tan added. The Santa Clara chipmaker had already laid off 15,000 employees in August 2024.
In his memo to staff, Tan also drew attentnion to unproductive administrative work and meetings. “Too much valuable time is being wasted,” he added.
Tan’s final change – the big one – is that workers will have to spend more time in the office. He described workers’ adherance to the existing three-day policy as “uneven,” implying enforcement could be stricter for the upcoming four-day policy for in-office working, which will come into force on September 1, 2025.
The news came as the company posted flat quarterly revenue compared with the same period last year, at $12.7 billion.
“I am taking swift actions to drive better execution and operational efficiency while empowering our engineers to create great products,” the CEO said in a statement.
