Intel Corporation has initiated a sweeping restructuring plan under its new CEO, Lip-Bu Tan, which includes laying off approximately 15,000 employees—roughly 15% of its global workforce—and ending its hybrid work model.
The changes, announced in an internal memo dated July 24, 2025, will take effect starting September 1, and are part of a broader effort to simplify operations, reduce costs, and refocus on core innovation areas such as chip development and artificial intelligence.
The layoffs will be implemented through a combination of direct job cuts and attrition, impacting multiple departments across Intel’s global offices.
The company’s headcount is expected to drop from over 96,000 to around 75,000 by the end of the year.
Intel Office Attendance Tightens: Four Days Mandatory
Alongside the job cuts, Intel is mandating a return to office for at least four days a week, ending the flexible hybrid model that had been in place since the pandemic.
Intel first announced the policy in April 2025 and will fully implement it across all campuses starting September 1.
Tan emphasized that in-person collaboration is essential for faster decision-making and maintaining Intel’s culture.
“I strongly believe that our sites need to be vibrant hubs of collaboration that reflect our culture in action,” he stated in the memo.
The company had previously allowed employees to work remotely for up to two days a week.
However, Tan criticized the uneven adherence to this policy during Intel’s Q1 earnings call, citing the need for consistency and stronger team dynamics.
Financial Discipline and Strategic Refocus
A renewed focus on financial discipline and performance is driving the restructuring.
Tan made it clear that Intel will no longer approve projects without clear economic value, stating, “There are no more blank checks.”
The company is pausing several global expansion plans, including new factories in Poland and Germany, and slowing construction at its Ohio facility.
Intel has also eliminated nearly 50% of its management layers in the second quarter of 2025 to create a flatter, more agile organization.
The company introduced these changes to streamline decision-making and reduce overheads, enabling it to concentrate resources on advanced chip technologies, AI capabilities, and manufacturing efficiency.
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