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Intel is preparing for big changes, including job cuts and a new return-to-office policy, after reporting a major financial loss of $821 million in the first quarter of 2025.

The company's revenue stayed flat at $12.7 billion, the same as this time last year, but losses nearly doubled from $437 million.

New CEO Lip-Bu Tan shared the news with employees in a letter posted online, saying that Intel needs to move faster and cut down on complexity. "We are seen as too slow, too complex and too set in our ways — and we need to change," Tan wrote.

According to USA Today, Intel hasn't confirmed how many jobs will be cut, but reports suggest that over 20% of its 109,000 workers could be affected.

That includes up to 12,000 employees in and around Chandler, Arizona, where Intel has a large presence. The company already laid off 385 workers there in October 2024.

In Folsom, California, Intel has cut hundreds of jobs over the past year and may make more cuts soon.

Intel plans to start these reductions in the current quarter and could continue them over the next few months. Tan also announced that starting September 1, hybrid workers will need to spend four days per week in the office, up from three.

Tan Pushes Big Changes as Intel Faces Tariff Pressure

Tan said he wants to simplify how the company operates by making teams smaller, cutting down on meetings, and giving engineers more decision-making power.

"Our competitors are lean, fast and agile — and that's what we must become to improve our execution," he told employees.

Intel has been one of Arizona's biggest employers for years, especially at its massive Ocotillo campus in Chandler.

The company also builds chips in Oregon, Texas, and California. While most of its manufacturing is in the US, Intel does import parts from China, which could be affected by new tariffs.

Tan, who became CEO in March 2025, has worked in the semiconductor industry for decades. He once led Cadence Design Systems and was honored with the Robert N. Noyce Award, the top prize in the chip industry.

According to TheSacramentoBee, as Intel tries to save money and stay competitive, Tan made it clear that some tough choices lie ahead.

"There is no way around the fact that these critical changes will reduce the size of our workforce," he wrote. Still, he said Intel must also "retain and recruit key talent" as it rebuilds.

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Intel, Job cuts