Intel is shaking things up. The tech giant recently confirmed a major restructuring plan, which includes cutting an unspecified number of jobs. The goal is to streamline the company’s engineering teams and simplify its workflow.
Big Changes Ahead
Rumors had been circulating about Intel’s potential layoffs, with some speculating that up to 20% of its 108,900 employees could be let go. While CEO Lip-Bu Tan didn’t reveal exact numbers, he emphasized that the changes aim to eliminate unnecessary systems and middle management layers. Tan believes in empowering top talent to make decisions and take ownership of key issues.
“I’m convinced that the best leaders are those who can achieve the greatest results with the fewest people,” Tan said. “We’ll apply this principle company-wide.” The restructuring is expected to start in the second quarter and will continue over the coming months.
Cost-Cutting Measures
Intel has been downsizing in recent years. Last August, the company announced it would cut over 15,000 jobs to reduce costs. The company is struggling with slowing sales as it adapts to the rapidly changing tech landscape, particularly the rise of AI. Tan plans to accelerate this transformation by focusing on engineering.
“The changes we’re driving are designed to make our engineers more efficient,” Tan said. “We’ll eliminate unnecessary steps and complex processes that slow down innovation.” Intel aims to cut $1.5 billion in operating expenses over the next two years. Tan wants managers to reduce unnecessary meetings and limit attendees to make better use of employees’ time.
As part of the restructuring, Intel is expanding its return-to-office policy. Starting in September, employees will be required to work from the office four days a week, up from three. Tan has ambitious goals for Intel’s future.
“I’m talking about creating opportunities that will be studied in business schools for generations to come,” he said. “We once were considered one of the most innovative companies in the world. There’s no reason we can’t get back to that.” The company’s AI focus is expected to drive this transformation.
While the layoffs signal Intel’s current challenges, the new CEO is taking bold steps to reshape the company for the future. Only time will tell if these changes will bring Intel back to its former glory.