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Intel, one of the historical giants of the tech sector, has launched a major reorganization after a recent leadership change. Its new CEO, Lip-Bu Tan, wants to streamline the company’s structure to do more with less. He began by laying off 20,000 employees.
That’s not the only shift facing Intel staff. According to a memo signed by Tan, the company plans to simplify back-office policies and reduce meetings.
More office time, less bureaucracy. Alongside the layoffs, the chipmaker will tighten back-office operations starting Sept. 1. Tan is calling on employees to return to Intel offices four days a week, up from three. “When we spend time together in person, it fosters more engaging and productive discussion and debate. It drives better and faster decision-making. And it strengthens our connection with colleagues,” Tan stated.
The move aims to “flatten the organization” and boost collaboration and agility—elements the new leadership sees as key to regaining ground against rivals like Nvidia and leading Taiwanese firms.
The “Zuckerization” of Intel. Tan’s strategy echoes the efficiency-driven approach Meta has adopted since 2023.
“Many teams are eight or more layers deep, which creates unnecessary bureaucracy that slows us down. I have asked the ET to take a fresh look at their respective orgs, with a focus on removing layers, increasing spans of control and empowering top performers. Our competitors are lean, fast and agile—and that’s what we must become to improve our execution,” Tan added.
Tan’s stance mirrors the streamlining seen across Big Tech—including Google, Microsoft, Amazon and, most notably, Meta.
Intel isn’t using a chainsaw. Despite stressing the need for layoffs to boost performance, Tan emphasized a balanced approach: “We must balance our reductions with the need to retain and recruit key talent. I will empower each of my leaders to make the best possible decisions aligned with our top priorities. These decisions will not be made lightly, and we will keep you regularly informed.”
The company’s new direction puts engineers at the center—a logical move given its focus on processors. Intel’s reforms aim to improve device efficiency and better attract and retain top technical talent.
New metrics, new mindset. Tan also wants to end the practice of hiring based on performance indicators rather than operational needs—a tactic used across Big Tech in recent years for both hiring and firing.
“I’ve been surprised to learn that, in recent years, the most important KPI for many managers at Intel has been the size of their teams. Going forward, this will not be the case. I’m a big believer in the philosophy that the best leaders get the most done with the fewest people. We will embrace this mindset across the company, which will include empowering our top talent to make decisions and take greater ownership of key priorities,” Tan concluded.
Image | Clément Proust
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