Intel announced its Q1 2025 earnings report, and its new CEO, Lip-Bu Tan, included a memo to all of his employees. He hinted at upcoming cuts and efficiency gains at Intel that should save about $500 million in 2025.
Lip-Bu Tan has not yet announced the large-scale layoffs of 20% (21,000) of the company’s employees, as previously reported by the media. «We have not set a goal to reduce the number of personnel», — Intel spokeswoman Sophie Metzger told The Verge.
Instead, Tan announced that employees would be in the office an extra day a week — four days instead of three. He said the company was purging «unnecessary bureaucracy», reducing team sizes, and cutting «labor-intensive corporate administrative tasks such as non-essential training and documentation».
Intel is hinting that job cuts are not far off, but they may come at the expense of individual Intel executives, rather than numerous employees.
«We have learned several valuable lessons from past actions. We must balance our reductions with the need to retain and hire key talent. I will empower each of my leaders to make the best decisions that align with our priorities,» Tan said in a memo.
He said he was «surprised to learn» that in recent years, the most important KPI for many Intel managers was the size of their teams. Tan believes that the best leaders do the most with the fewest people. The Intel boss said that these cuts «will begin in the second quarter» (i.e., already).
Intel said it hopes to save an additional $0.5 billion in 2025 alone, and even more in 2026. In the first quarter of 2025, the company lost $0.4 billion on flat revenue of $12.7 billion.
Previously, it was reported that Tang plans to significantly change Intel’s processor manufacturing and reduce what he considers a «slow and bloated middle management layer.» He added that the company’s teams need to find $2 billion that they can save on capital expenditures.
Trump’s tariffs could make some Intel processors more expensive, and the company is bracing for people potentially buying fewer computers as a result.
«While we have compensatory measures, including a global, highly diversified manufacturing base that helps mitigate tariffs, we will certainly see cost increases,» said Intel CFO David Zinsner.
Recall that in March, Intel appointed a new CEO, replacing Pat Gelsinger, who resigned at the end of last year. He became a little-known but influential executive in the tech industry, Lip-Bu Tan. He will receive a reward of about $69 million if he meets targets over the next few years.
Read the country’s main IT news in our Telegram
Read the country’s main IT news in our Telegram
Intel plans to lay off over 21,000 employees — first major restructuring under new CEO
Intel plans to lay off over 21,000 employees — first major restructuring under new CEO
PCs with AMD and Intel processors will get Copilot AI features that were exclusive to Snapdragon X computers
PCs with AMD and Intel processors will get Copilot AI features that were exclusive to Snapdragon X computers
Intel’s new CEO will be paid a 200% bonus if he leads the company out of crisis. He could earn about $69 million
Intel’s new CEO will be paid a 200% bonus if he leads the company out of crisis. He could earn about $69 million
