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In a significant shift just days after reports of imminent staff reductions, Intel has mandated that employees return to the office four days a week. This announcement came from the company’s new CEO, Lip-Bu Tan, during Intel’s first quarter 2025 earnings call.
Effective September 1, the requirement to increase in-office workdays represents a shift from Intel’s former policy of three days per week. During the call, Tan emphasized the importance of in-person collaboration, stating, “I know firsthand the power of teamwork, and this action is necessary to re-instill a more collaborative work environment, improve efficiency, and boost innovation.”
Tan articulated that the initiative aims to streamline operations and reduce costs. Concurrently, Intel reported a net loss of $800 million for the first quarter, a stark increase from the $400 million loss during the same period the previous year.
In a memo to employees released Thursday, Tan reinforced the necessity of more frequent in-person interactions. He noted, “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.”
In tandem with the return-to-office policy, layoffs are on the horizon as part of an overarching strategy to enhance efficiency. Tan indicated that workforce reductions will begin this quarter, with the total expected to exceed 21,000 positions—representing roughly 20% of Intel’s current workforce of 108,900—as reported in a Bloomberg article.
There’s growing concern that return-to-office mandates could act as a subtle form of layoffs, potentially encouraging employees to leave voluntarily due to the stricter on-site requirements. A study from Bamboo HR highlighted that a significant proportion of C-suite executives viewed return-to-office orders as a way to prompt attrition among staff.
Taking on his new role as CEO on March 18, Tan brings a wealth of experience in the semiconductor industry, having led Cadence Design Systems from 2009 to 2021 and serving on Intel’s board from September 2022 until August 2024. He is now overseeing efforts to revitalize Intel amidst a backdrop of declining revenues and mounting competition from firms like Nvidia and AMD in the artificial intelligence chip sector.
Intel’s annual revenue has seen a sharp decline, falling from $79 billion in 2021 to $53.1 billion in 2024. Revenue for Q1 2024 remained flat at $12.7 billion compared to the same period last year. The company’s stock has also suffered greatly, with a decrease of over 40% in the last year and more than 66% over the past five years, as of the date of this report.
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