On April 24, U.S. local time, Intel CEO Lip Bu-Tan issued an open letter to employees titled "Our Way Forward," announcing sweeping changes across the company, including large-scale layoffs, organizational restructuring, the discontinuation of non-core product lines, and stricter return-to-office requirements.

Tan said the company had been perceived by customers as “too slow, too complex, and too insular” and emphasized the need for cultural change. “I believe the best leaders get the most done with the fewest people,” he wrote, noting that Intel would reduce its workforce to sharpen focus on key priorities and empower top talent. Effective September 1, all employees will be required to work on-site at least four days a week, up from the current three-day hybrid policy.

Although Intel did not disclose an exact figure, media reports indicate that the company plans to lay off approximately 20% of its global workforce — about 22,000 employees. As of the end of 2024, Intel employed 108,900 people worldwide. The company previously cut 15,000 jobs in 2024 and ended the year with a net loss of $18.8 billion.

Tan, who took over as CEO just five weeks ago, is pushing for a deep cultural transformation. He highlighted excessive bureaucracy, saying many teams had “eight or more layers of management,” and vowed to flatten the organization and restore a strong engineering-driven culture. He also announced a reduction in Intel's operating expense targets — aiming for $17 billion in 2025 and $16 billion in 2026, down $1.5 billion over two years.

Internal processes are also being streamlined. Mandatory OKRs (objectives and key results), once revived under former CEO Pat Gelsinger, are now optional. Tan is also eliminating redundant meetings and reducing attendance requirements to improve execution speed and efficiency.

Despite the difficult measures, Tan expressed optimism. “This is an opportunity to fundamentally reinvent an industry icon… to pull off a comeback that will be studied in business schools for generations,” he said. “It will be hard. It will require painful decisions. But I have great confidence in our team to make it happen.”