Intel CEO Lip-Bu Tan addressed the company following the release of its Q1 2025 financial results, which exceeded guidance in terms of revenue, gross margin, and earnings per share. Tan acknowledged the accomplishment but emphasized that ongoing macroeconomic volatility and internal challenges demand further decisive action for the company to remain competitive.
Tapping into feedback from customers and employees, Tan highlighted a prevailing perception of Intel as slow, overly complex, and resistant to change. In response, he cited the recent reorganization of the executive team into a flatter structure as the beginning of a broader transformation. The CEO noted that the next phase will focus on improving simplicity, speed, and collaboration throughout the organization, starting with an empowered and elevated engineering function at the executive level.
To support technology innovation and invest in engineering talent, Intel has committed to reducing operating expenses and capital spending. Lip-Bu Tan confirmed that the company´s current cost structure significantly exceeds competitors´, necessitating a reduction in the workforce as part of a strategy to streamline operations. The goal is to remove inefficient workflows, accelerate innovation, and return Intel to its engineering roots. Details concerning the scale and nature of these changes were to be further discussed during the investor call.
