Intel CEO Lip-Bu Tan has outlined a sweeping transformation plan focused on streamlining operations, reducing management layers, and refocusing on core computing leadership. The strategy aims to return Intel to top-tier execution and competitiveness.
In a company-wide memo, Tan emphasized engineering empowerment and improving operational discipline as key elements of the new direction.
What’s next for Intel
In addition to Intel’s strategic moves, including a joint venture with TSMC to expand manufacturing capacity and the divestment of non-core businesses to boost its primary operations, the firm is rolling out several internal changes that go beyond restructuring. These measures reflect a broader effort to optimize workflows and fast-track decisions.
Equipping engineering talent for innovation
Intel is shifting its focus back to engineering, with Tan elevating engineering functions to the executive team. This move seeks to remove bureaucratic barriers to help engineers work more efficiently and accelerate product development.
The company will also make targeted investments in engineering talent and technology roadmaps while reducing operational costs.
Simplifying Intel’s organizational structure
The organization is restructuring its management layers to improve agility and decision-making. Tan stated that teams have grown too deep and complex, slowing the company down. To address this, Intel will flatten hierarchies, increase spans of control, and empower top performers.
As part of this change, the company will reduce its workforce in the second quarter. The new Intel CEO said they must make difficult decisions to stabilize its position. According to Bloomberg, these reductions will affect more than 20% of Intel employees, though the company has not confirmed that figure.
Cutting down on bureaucracy for faster execution
Intel is eliminating time-consuming internal processes to sharpen execution. Excessive meetings, redundant training, and rigid reporting requirements are being scaled back. The company plans to replace outdated workflows with real-time data tools to support quicker, more effective decisions.
Adapting to a new office work culture
Employees will be expected to work four days per week on site starting September 1, up from the current three-day policy. In-person time is viewed as necessary for productive discussions, faster decision-making, and building stronger connections among colleagues.
Intel commits to change
Intel’s major transformation is a bold, decisive pivot toward agility, innovation, and customer focus. Tan has been candid about Intel’s challenges, stating, “We are seen as too slow, too complex and too set in our ways — and we need to change.”
The company’s renewed focus on operational efficiency and engineering excellence signals a break from old habits and readiness to meet evolving market demands. The message is clear: Intel is determined to shed the inertia of the past, rebuild customer trust, and reclaim its place at the forefront of the industry.
