Beleaguered chipmaker Intel confirmed a plan to reduce its headcount going forward as part of an overall effort to cut expenses this year and streamline its operations.
While recent reports indicate the company could lay off about 20 per cent of its staff, CEO Lip-Bu Tan and CFO David Zinsner stated on the company’s Q1 earnings call yesterday (24 April) that it is too soon to determine the exact number.
In his first earnings report since taking over as CEO in March, Tan stated his “biggest learning so far is that we need to fundamentally transform our culture and the way in which we operate”.
He outlined a plan to cut operational and capital expenses, remove middle management layers and rebuild its engineering talent pool by promoting from within and “bringing back critical lost talent”.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” he said in a letter to employees on Intel’s website. “As I said when I joined, we need to make some very hard decisions to put our company on a solid footing for the future.”
Tan stated on the earnings call his first step includes flattening Intel’s leadership team and having all critical product, manufacturing, and G&A functions that are spread out across two to three layers report directly to him.
Starting in Q3 2025, Intel will mandate a four day per week return to office policy.
“I know first-hand the power of teamwork and this action is necessary to re-instil a more collaborative working environment, improving efficiency and boost innovation,” Tan explained.
Intel did not include restructuring charges in its guidance.