Intel's New CEO Outlines Strategy Behind Layoff Policy

April 28, 2025 | 06:46 pm

TEMPO.CO, Jakarta - Intel Corp has confirmed restructuring, including plans for layoffs, starting in the second quarter of 2025. In a memo, Intel's CEO Lip-Bu Tan did not specify the scale of the layoffs, but he emphasized that the move is to trim unnecessary bureaucracy.

"I’m a big believer in the philosophy that the best leaders get the most done with the fewest people," Tan said, quoted from Engadget on Monday, April 28, 2025.

Tan, who has led Intel since mid-March, aims to streamline the middle management layer. Under heavy pressure, the chip manufacturer will grant greater authority to its best talents to make the best decisions according to priorities.

In the memo, Tan reiterated his statement when he first joined Intel. "We need to make some very hard decisions to put our company on a solid footing for the future."

Intel's restructuring could affect more than 20 percent of its employees. Intel employees had already fallen to around 120,000 due to the COVID-19 pandemic in 2022. Efficiency in 2024 further reduced the number to 108,900. Declining sales, especially due to Intel's delay in responding to AI trends, also worsened the situation.

Tan mentioned that AI technology will be Intel Corp's future focus. He said that to pursue this target, a comprehensive approach is needed to redefine the company's portfolio. There are also efforts to adjust the product roadmap.

"So that we are positioned to make the best-in-class products while staying laser focused on execution and ensuring on time delivery," he said.

Tan aims to accelerate innovation by making Intel a company more focused on engineering. Some changes will involve the productivity of engineers, such as eliminating workflows and burdens that hinder innovation.

Intel, founded on July 18, 1968, in California, United States, also plans to cut costs in other sectors to increase investments in engineering talent and its technology roadmap. Management aims to reduce operational expenses by $1.5 billion over the next two years.

Intel managers have been instructed to reduce unnecessary meetings and limit the number of meeting participants. "Too much valuable time is being wasted," Tan said. He added that employees must be present in the office for four days a week starting from September 2025, one day longer than the current policy.

Tan described his ambitious goal to reverse Intel's current fortunes. According to him, Intel was once widely known as the most innovative company in the world.

"There’s no reason we can’t get back there, so long as we drive the changes needed to improve," he said.

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