The new CEO of Intel indicates simplification of efforts, but he does not explain the exact layoff numbers

Tan lipThe new CEO of Intel sent a sharp message to the employees who say the company must reorganize it to be more efficient. He said that there will be a decrease in the employees, but he did not announce a precise number of workers’ demobilization as expected.

Bloomberg stated that Intel is rumored that she is preparing to benefit as much as 20 % of her workersWhich was at the end of 2024 about 108,900 people. Reducing 20 % will reach nearly 21,780 jobs lost. Although the changes announced by Tan today may lead to significant discounts in the jobs that will start in the second quarter, it did not clarify the expected figures.

Tan A message to the employees It coincided with the release of the quarterly numbers of Q1 2025. For profits, Tan said, “It was a step in the right direction as we achieved revenues and the total margin and the arrow (arrow profits) over our guidance, driven (former two former participants Dave Zensner and Michelle Johnston).

But he quickly warned, saying: “We need to build on this progress-and it will not be easy. We are moving in the macroeconomic environment, volatile and increasingly confirmed, which are reflected in our Q2 expectations. Moreover, there are many areas that we must improve.

“There is no way about the fact that these critical changes will reduce the size of our workforce. As I said when I joined, we need to make some very difficult decisions to put our company in full swing for the future. This will start in the second quarter and we will move as soon as possible in the next few months.”

In his message, Tan said that Intel had not set any goal to reduce the number of employees.

He said: “What we did is a new goal for GAAP operating expenses to nearly $ 17 billion in 2025, a decrease from our previously announced goal, which is 17.5 billion dollars, and 16 billion dollars in 2026.” “There is no way about the fact that these critical changes will reduce the size of our workforce. As I said when I joined, we need to make some very difficult decisions to put our company in full swing for the future. This will start in the second quarter and we will move as soon as possible in the next few months.”

Tan’s view of Intel culture

Tan inherited a difficult situation as it lost Intel in the AI/Graphics market to NVIDIA and in the X86 processor to advanced small devices. He did not empty words about criticizing Intel’s culture as a large company.

“As I said, this begins to renew our culture. The comments I received from our customers and many of you were consistent. We have been considered very slow, very complex and very total in our ways – and we need change,” he wrote.

He said that the CEO of the executive team (ET) last week was a first step. “The next step is to increase simplicity, speed and cooperation across the entire company. Thus, he has upcoming changes. Among them: reshaping the AI ​​strategy for the company. He also said that the financial performance of Intel is not the place where it should be and that Intel will reduce capital spending.

He also said that Intel will not revolve around Intel Capital and invest in foreign companies. Intel sells 51 % of the ALTA to Silver Lake Partners. The Altera value is 9 billion dollars, so the deal will generate a great money for Intel.

“We need to return to our roots and enable our engineers. That is why I raised our basic engineering functions to ET. Many of the changes that we will lead to are designed to make engineers more productive by eliminating the exhausting workflow and operations that slow the pace of innovation,” Tan said.

He said that INTEL needs necessary investments in engineering talents and technological maps, which need to find new ways to reduce costs.

He said: “Although we have taken important measures last year, our current cost structure is still much higher than competitive standards. Take into account, we have reduced our operating expenses and the goals of capital spending, which I will discuss while calling this afternoon.”

“While we re -focus on engineering, we will also remove the organizational complexity. Many of the difference in the depth of eight layers or more, creating an unnecessary bureaucracy that slows down us. He said.

As a long time engineer, it is not surprising that Tan focus on enabling engineers to do more. He wrote: “I was surprised when I learned that, in recent years, the most important main performance indicators for many managers in Intel were the size of their teams. To go forward, this will not be the case. I am a great believer in the philosophy that the best leaders get with fewer people.

He said that the company will enable the smaller difference to move faster, make better decisions and reduce the number of layers on the road. He said that Intel would balance the cuts against the need to keep and recruit major talents. He said that he will keep the team.

Simplification operations

Tan said he was supposed to see the amount of time and energy spent on internal administrative work that does not lead to the front.

“We need to radically simplify this to increase the time he spends focusing on our customers,” he said.

“I ask our leaders to eliminate unnecessary meetings and reduce the number of those present at the meeting significantly. A lot of precious time is lost. We will also update operations with a focus on live information boards and better data to ensure that we have visions in the actual time we need to make better and faster decisions.”

One of the things that he makes optional is Intel’s official opinion traditions and OKR requirements. It believes that maintaining responsibility and assimilation can be done in a simpler and more flexible way.

He said that the company will return to work in the office for four days a week, instead of the required current three days a week on the site. The office plan enters for a period of four days in effect on September 1, 2025.

He said: “I realize that this is a lot to get, but we play from behind and we need to gather as one team to put ourselves in the best possible position to win.”

It is a very difficult drug, and not, unlike the difficult policies that Andy Group, the former CEO of Intel, will do.

I am talking about the opportunity to re -invent the industry icon mainly. To cancel a return that will be studied in business administration for future generations. To create new technologies and spread them widely to change the world for the better.

“Antel was widely seen as the most innovative companies in the world. There is no reason we could not return there, as long as we lead the necessary changes to improve.” “It will be difficult. It will take painful decisions. But we will make them know that this is what we should do to better serve our customers with a new Intel building for the future – I have great confidence in the strength of our team and our people to achieve this.”

In conclusion, he thanked the employees for “everything I did in the first quarter.” In an analyst’s call, he indicated that he joined five weeks ago. He replaced the temporary presidents as well as the former CEO Bat GilgringerThose who resigned in December 2024.

Tan said that his slogan was under the promise and delivery, and he will not rest until Intel regained the confidence of her customers. Intel said the definitions will definitely affect her work, partly due to the caution she will generate among customers.