Intel will require four-day office work week as it aims to ‘flatten organization’

The following note was sent from Lip-Bu Tan to all Intel Corporation on April 24, 2025:

a team,

Today we were informed of the results of Q1 2025. It was a step in the right direction as we achieved revenues and the total margin and the arrow (profitability of the arrow) over our guidance, driven by Dave and Michel. I would like to thank them both, and all of you, for good implementation.

We need to build on this progress – and it will not be easy. We move in the increasingly and unconfirmed macroeconomic environment, which is reflected in our Q2 expectations. Moreover, there are many areas where we have to improve. We need to face our face challenges and take quick measures to return to the right track.

As I said, this begins with the renewal of our culture. The comments I received from our customers and many of you were consistent. It is seen as very slow, very complex and very sum in our ways – and we need to change.

The structure of our executive team (ET), which was shared last week, was a first step. The next step is to increase simplicity, speed and cooperation across the entire company. To achieve these goals, today it has announced some important changes.

It becomes a company that focuses on engineering

We need to return to our roots and enable our engineers. For this reason I raised our basic engineering functions to ET. Many of the changes that we will lead are designed to make engineers more productive by removing the workflow and exhausting operations that slow the pace of innovation.

To make the necessary investments in our engineering talents and technology maps, we need to find new ways to reduce our costs. Although we have taken important measures last year, our current cost structure is still much higher than competitive standards. Time in mind, we have reduced our operating expenses and our capital spending targets, which I will discuss while calling the investor this afternoon.

The organization flattens

While re -focusing 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 us. I asked ET to take a new look at the Orgs of each of them, focusing on the removal of layers, increasing control extensions and enabling the best performance. Our competitors are meager, fast and graceful – and this is what we must become to improve our implementation.

I was surprised when I learned that in recent years, the most important indicators of many managers in Intel were the size of their teams. To move forward, this will not be the case. I am a great believer in the philosophy that the best leaders get with fewer people. We will embrace this mentality throughout the company, which will include enabling our higher talents to make decisions and assume greater ownership of the main priorities.

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 move as soon as possible in the next few months.

We will be very deliberate about where we focus on these efforts and how we deal with the best in this industry. We have learned some valuable lessons from the previous procedures. We must balance our discounts with the need to retain and employ major talents. I will enable all of my leaders to make the best possible decisions with our higher priorities. These decisions will not be taken lightly, and we will keep you aware regularly.

Simplify our operations

For me it was supposed to see the amount of time and energy spent on the internal administrative work that does not advance our work forward. We need to radically simplify this to increase the time it spends focusing on our customers.

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.

In addition, I decided to make our official vision and OKR requirements optional. Although it is very important to us to remain responsible for our results and receive notes on our performance, I think we can achieve this in a simpler and more flexible way. With the same path, we will reduce the administrative tasks of time -consuming companies such as training and unnecessary documentation.

Back to the office

Our current policy is that our hybrid employees should spend about three days a week on the site. Adherence to this policy was unequal at best. I believe in a firm belief that our sites need to be the vibrant axes of cooperation that reflects our culture.

When we spend some time together, it enhances a more attractive and productive discussion and discussion. It pays the decisions better and faster. It strengthens our relationship with colleagues.

With this in mind, we will update our policy to require four days a week on the site by September 1. I wanted to tell you well so that you have time to make any adjustments to your daily routine. We will work hard in the meantime to ensure that the sites are ready to work at full capacity. Your local leadership will share the details of the site and request your entry on how to create the best possible experience on the site.

A new Intel building

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

This requires us to focus on the laser on developing the best products. We need the joy of our customers and gain their confidence by providing the performance, quality and reliability they need to achieve success. We must prove the expected implementation and ensure delivery on time. We need to provide consistent returns to our shareholders.

There are two ways that the difference can respond to moments of making or breaking such: they can look at the gap they need to be closed and surrender-or they can look inside themselves and fighting as it has not happened before.

I chose my choice last month when I decided to join all of you, and there is no place I will prefer now. I came on the plane knowing very well that this is the most challenging function in my career, but also the most motivated and loyal – because we have opportunities that most people in their career do not get.

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.

Intel was widely seen as the most innovative company in the world. There is no reason for not being able to return there, as long as we lead the necessary changes to improve.

It will be difficult. It will require 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 – and I have great confidence in the strength of our team and our employees to achieve this.

Thank you for everything you did in the first quarter. I am looking to speak more tomorrow during our meeting of the company.

Tan lip