Intel Corporation is bracing for another wave of workforce reductions, a move expected to affect employees companywide, including those at its longtime Folsom campus. The announcement came Thursday from newly appointed CEO Lip-Bu Tan, whose detailed companywide memo laid out a direct critique of Intel’s internal challenges and a roadmap for what he said are necessary structural and cultural changes.

“There is no way around the fact that these critical changes will reduce the size of our workforce,” Tan said. “As I said when I joined, we need to make some very hard decisions to put our company on a solid footing for the future. This will begin in Q2 and we will move as quickly as possible over the next several months.”

The reductions, set to take place before the end of the second quarter on June 30, follow several prior rounds of layoffs. In Folsom, at least 1,117 employees have been laid off since January 2023, with the most recent effective March 31. Intel also announced in November 2024 it would sell its Prairie City Road campus in Folsom, leasing back only the space it needs as part of its cost-cutting strategy.

Tan, who assumed the CEO position in March following the resignation of Pat Gelsinger, is moving quickly to reshape the company’s direction. While Intel exceeded guidance for revenue, gross margin and earnings per share in Q1 2025, Tan said performance alone is not enough.

“We are navigating an increasingly volatile and uncertain macroeconomic environment,” Tan said. “On top of that, there are many areas where we must improve. We need to confront our challenges head-on and take swift actions to get back on track.”

Tan said feedback from customers and employees has been consistent, with many viewing Intel as “too slow, too complex and too set in our ways.”

“To achieve our goals, we must revamp our culture,” Tan said. “We need to drive greater simplicity, speed and collaboration across the entire company.”

Part of that effort involves returning Intel to its engineering roots. “We need to get back to our roots and empower our engineers,” Tan said. “That’s why I elevated our core engineering functions to the Executive Team.”

He said a key obstacle has been organizational complexity. “Many teams are eight or more layers deep, which creates unnecessary bureaucracy that slows us down,” Tan said. “Our competitors are lean, fast and agile — and that’s what we must become to improve our execution.”

Tan also said too much energy is being spent on internal work that doesn’t move the business forward. “It has been eye-opening for me to see how much time and energy is spent on internal administrative work,” he said. “We need to radically simplify this to maximize the time spent focusing on our customers.”

To that end, Tan is instructing leaders to reduce unnecessary meetings, limit attendance, and focus on data-driven decisions using live dashboards and real-time insights. He also announced that Intel will scale back time-consuming corporate requirements.

“I have decided to make our formal Insights and OKR requirements optional,” Tan said. “We will cut back on time-consuming corporate administrative tasks such as non-essential training and documentation.”

Another notable change will come in the form of workplace attendance. Intel’s current hybrid policy recommends three days a week in the office, but beginning Sept. 1, hybrid employees will be required to work on-site four days per week.

“I strongly believe that our sites need to be vibrant hubs of collaboration that reflect our culture in action,” Tan said. “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 also challenged past assumptions around leadership priorities. “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,” he said. “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.”

He said teams must become more accountable, more agile, and more focused on execution. “We must demonstrate predictable execution and ensure on-time delivery,” Tan said. “We need to delight our customers and earn their trust by delivering the performance, quality and reliability they need to succeed.”

Last summer, the City of Folsom and Choose Folsom, which is the Folsom Chamber of Commerce, issued a joint statement citing their support for the local workforce that could be affected in the cuts as they take place. Intel is the largest employer in the City of Folsom.

“We at the City of Folsom and Choose Folsom recognize the potential impact this news may have on our community. While the specific details concerning the number of layoffs affecting Folsom remain uncertain, we extend our deepest sympathies to all those impacted by this decision,” read the statement shared with Folsom Times at the time.

“The City of Folsom and Choose Folsom are committed to supporting our local workforce during this challenging time. We are confident in our community’s resilience and ability to adapt to changes in the industry,” the statement continued. “As we navigate through this period, we look toward the future with optimism. We believe in the strength and diversification of the tech industry in Folsom, and we are dedicated to fostering an environment that continues to attract and retain a diverse range of tech enterprises.”

Intel, founded in 1968 and headquartered in Santa Clara, is a global leader in semiconductor technology, particularly known for its computer processors. The company has faced increased competition from rivals such as Taiwan Semiconductor Manufacturing Co. (TSMC), AMD, and Nvidia, which have steadily chipped away at Intel’s market share in various sectors. Intel’s Folsom campus, covering 236 acres and once housing over 5,000 employees, has long been a major hub for the company’s office, research, development, and support activities. Readers can view Tan’s entire memo HERE.

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