Intel to Cut 15,000 Jobs and Reinstate Office Workflow in September
Intel is making headlines again, but not for innovation this time. The semiconductor giant has announced a major workforce overhaul and a dramatic return-to-office policy set to begin in September 2025.
A Bold Restructuring Move
In a memo to employees, Intel CEO Lip‑Bu Tan confirmed that the company will reduce its global headcount by 15 percent—impacting approximately 15,000 jobs. This sweeping cutback follows a year of industry-wide belt-tightening as AI-driven automation, declining PC sales, and competitive pressures reshape the landscape of hardware manufacturing.
According to Intel, the layoffs are part of a “long-term operational efficiency plan,” aimed at refocusing its investments on AI chip development, foundry services, and next-gen semiconductor fabrication.
Four-Day Office Return by September
But it’s not just jobs that are being cut. Intel will also mandate a four-day in-office workweek for all full-time employees, starting September 2025. This marks a sharp pivot from its previously hybrid or remote-first flexibility during the COVID-19 pandemic era.
Lip‑Bu Tan emphasized the move is meant to "reignite in-person collaboration and accelerate innovation cycles," a rationale increasingly shared by tech leaders amid productivity concerns tied to remote work.
Signals of Broader Industry Shifts
Intel’s decision arrives during a wave of change across the tech sector. Many companies, including Amazon and Meta, have already begun tightening remote work policies. The layoffs, meanwhile, echo a broader trend in which AI automation is beginning to displace mid-tier and even technical roles.
For Intel, this is also about strategic repositioning. The company is investing heavily in building AI-centric chips and regaining its lost edge against competitors like AMD and NVIDIA. These changes, though painful, appear to be a signal that Intel is getting leaner to get smarter.