## Intel’s New CEO Mandates Four-Day Office Week and Hints at Workforce Reductions in Shake-Up
Intel is undergoing a significant transformation under its new CEO, Lip-Bu Tan, who took the helm on March 18th, 2025. In a move aimed at “flattening the organization,” Tan has announced a shift to a four-day in-office work week for employees, up from the previous three, alongside efforts to streamline operations and reduce bureaucracy. The changes come as the company seeks to improve its financial performance and regain its competitive edge.
In an all-hands memo, Tan outlined his vision for a “new Intel,” emphasizing a return to the company’s engineering roots. He criticized the current structure as being too slow, complex, and entrenched in its ways, citing feedback from customers and employees alike.
The increased in-office mandate, effective September 1st, is intended to foster better collaboration, faster decision-making, and a stronger sense of connection among colleagues. Intel’s leadership believes that more in-person interaction will lead to more engaging discussions and a more productive work environment.
Beyond the return-to-office policy, Tan’s strategy involves a significant restructuring of Intel’s internal organization. He aims to eliminate unnecessary bureaucracy, reduce the size of teams, and streamline processes. “Organizational complexity and bureaucracies have been suffocating the innovation and agility we need to win,” Tan stated. He has instructed leaders to eliminate unnecessary meetings, reduce meeting attendees, and modernize processes with real-time data and live dashboards. Even formal “Insights and OKR requirements” will become optional.
While Intel is not announcing mass layoffs, the memo subtly suggests that job cuts are anticipated. Tan emphasized empowering leaders to make decisions aligned with top priorities, hinting at potential workforce reductions within individual departments. He pointedly stated that team size should no longer be the primary Key Performance Indicator (KPI) for managers, reinforcing the need to achieve more with fewer resources. These workforce reductions are expected to begin in Q2 of 2025 and continue over the coming months.
These changes aim to contribute to Intel’s goal of saving an extra $0.5 billion in 2025 alone and even more in 2026. The company reported a $0.4 billion loss in Q1 2025, with flat revenue of $12.7 billion, underscoring the urgency of the transformation.
Tan also outlined several key priorities for Intel’s future: building best-in-class products, redefining its portfolio for AI workloads, refining its AI strategy, building trust with foundry customers, and prudent capital management.
Regarding its all-important 18A process, Intel maintains its expectation for volume production in the second half of 2025, with Panther Lake silicon-based laptops launching by year-end.
The company is also bracing for potential impacts from tariffs, anticipating increased costs and a potential contraction in the Total Addressable Market (TAM). Despite this, Intel is optimistic that Panther Lake will offer a competitive performance and price point. The future Nova Lake will continue to leverage TSMC for some manufacturing, with a long-term goal of producing 70% of its chips in-house.
Ultimately, Intel’s new CEO is pushing for a significant cultural and operational overhaul to revive the company’s standing in the industry. The combination of a stricter return-to-office policy, organizational restructuring, and subtle hints of workforce reductions signals a determined effort to streamline operations, foster innovation, and drive profitability. The success of this transformation remains to be seen, but the message from the top is clear: Intel is ready to fight for its future.