Intel is rolling out new return-to-office policies and staff reductions as part of a sweeping internal overhaul revealed during its Q1 2025 earnings call. The changes reflect CEO Lip-Bu Tan’s effort to reposition the chipmaker as a renewed force in global tech leadership.
Return-to-Office Mandate to Reinforce Operational Alignment
Intel is tightening its return-to-office policy, mandating four in-office days per week starting this September. CEO Lip-Bu Tan tied the shift to larger cultural and operational goals, including faster decisions and stronger team alignment. “Our sites need to be vibrant hubs of collaboration that reflect our culture in action,” he stated, adding that Intel will prepare its campuses accordingly. “We are going to work hard in the meantime to ensure sites are ready to operate at full capacity.”
Q2 Workforce Reductions Target Organisational Layers
Intel will trim its workforce again in 2025 as part of CEO Lip-Bu Tan’s plan to address what he calls “excessive organisational complexity.” The cuts are set to begin in the second quarter and follow the 2024 layoffs that affected roughly 15,000 employees. “Many teams are eight or more layers deep, which creates unnecessary bureaucracy that slows us down,” Tan said.
The tech organisation plans to flatten management structures and align leadership evaluation with output and efficiency. “I’m a big believer in the philosophy that the best leaders get the most done with the fewest people,” Tan added.
Administrative Streamlining to Improve Execution Speed
The company is targeting administrative overhead with a series of operational changes aimed at improving focus and speed. CEO Lip-Bu Tan announced the removal of “unnecessary meetings” and a reduction in internal training and documentation, saying, “It has been eye-opening for me to see how much time and energy is spent on internal administrative work that does not move our business forward.”
The company will also introduce real-time dashboards and live data systems to accelerate decision-making and reduce reliance on rigid internal structures such as OKRs.
Culture Reboot Anchored in Simplicity, Speed, and Collaboration
Intel’s transformation efforts are extending into its internal culture, as CEO Lip-Bu Tan calls for a reinvention of how the company operates and collaborates. “The feedback I have received from our customers and many of you has been consistent. We are seen as too slow, too complex and too set in our ways — and we need to change,” Tan said.
Intel will prioritise “greater simplicity, speed, and collaboration” under the new strategy, as it looks to recapture its identity as a forward-leaning technology leader.
Revenue Trends Underscore Strategic Urgency
Intel reported Q1 2025 revenue of $12.7 billion—flat compared to the same period last year. For full-year 2024, revenue fell 2% to $53.1 billion, far below its $79 billion peak in 2021. The numbers showcased the stakes of Tan’s transformation efforts.
Tan remains optimistic about Intel’s potential to lead once again despite the downturn. “To pull off a comeback that will be studied in business schools for generations to come. To create new technologies and deploy them at scale to change the world for the better,” he wrote.
Conclusion
Intel is moving forward with a complex internal reset designed to simplify its structure and accelerate performance.
The coming months will reveal whether its strategies—ranging from layoffs to leadership culture changes—can produce the agility needed to compete more effectively. The company is banking on a leaner and more integrated approach to reassert its standing in the global tech ecosystem.