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Intel plans to sell Bengaluru office as company adopts hybrid-first work model

By Nagasunder in Business News, posted June 27, 2023

Intel is planning to sell its Bengaluru office as part of its shift to a "hybrid-first" work model.

According to The Economic Times, the company's office space, spanning 250,000 square feet on Old Airport Road, is currently undergoing a bidding process.

Prominent builders have reportedly submitted bids, with the deal anticipated to exceed Rs 450 crore(.5.85 million US dollars)

Following the completion of the sale, Intel will continue its operations at the same location in Bengaluru.

Sources revealed Intel intends to enter into a lease agreement with the new owners after the transaction.

It is expected the company will lease the office space for a duration of three years.

In an email statement to ET, an Intel spokesperson said: "As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions. As such, we will be consolidating certain offices in Bengaluru.

"Bengaluru remains an important design and engineering center for Intel, with approximately 14,000 employees based in the region."

In 2021, Intel announced its adoption of a "hybrid-first" model in response to the COVID-19 pandemic.

Christy Pambianchi, Intel's chief people officer, disclosed at the time 90 percent of the company's global workforce preferred a hybrid workplace once sites reopened.

Intel said: "The pandemic compressed a decade's worth of change into months.

"From a crisis came an opportunity to reimagine how we work and collaborate. At Intel, it's meant creating our future as a 'hybrid-first' company."

It remains unclear whether Intel will pursue a similar real-estate strategy for its other offices in different locations.

The decision to sell its Bengaluru space follows the company's earlier announcement of layoffs across various areas earlier this year. In April, Intel also reported its largest quarterly loss.

Other technology companies have likewise adopted real-estate strategies to reduce expenses amidst an uncertain global economy and the prevalence of hybrid work arrangements following COVID-19 lockdowns.

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For example, Twitter relinquished some of its key offices, including certain co-working spaces in India, following Elon Musk's formal takeover late last year.

While Google has not divested its primary campus in California, it has scaled back some office perks to mitigate costs.

Google also says hybrid work may not be suitable for certain on-site benefits that employees previously enjoyed.