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

Intel is planning to sell its Bengaluru office as the company continues to operate in a "hybrid-first" model. As reported by The Economic Times, the company's 250,000 square feet office space on Old Airport Road is already a part of a bidding process. The report adds that several "well-known builders" have placed bids, and the deal is expected to exceed Rs 450 crore. Once the sale process is complete, Intel will continue operating from the same location in Bengaluru.

The report states that Intel would enter into a lease agreement with the new owners following the deal. The company may lease the office space for three years, people familiar with the matter have told the publication. The American chipmaker also confirmed the development to ET in an email statement. A spokesperson said, "As a hybrid-first company, we are continuing to assess and optimise our space utilisation 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 centre for Intel, with approximately 14,000 employees based in the region."

In 2021, Intel announced that the company would adopt a "Hybrid-first" model amid the COVID-19 outbreak. At that time, Intel chief people officer Christy Pambianchi revealed that 90 per cent of its global workforce would prefer a hybrid workplace when sites re-open. The company 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 would adopt a similar real-estate strategy for its other offices in other locations. The move to sell its Bengaluru space comes after the company announced layoffs "across the board" earlier this year. Intel also posted its largest quarterly loss in April.

Not just Intel, other tech brands have adopted a similar real-estate strategy to reduce expenses amid an uncertain global economy and hybrid work life following COVID-induced lockdowns. For instance, Twitter let go of its key offices, including some co-working spaces in India, after Elon Musk's formal takeover late last year. While Google has not let go of its key campus in California, it has reduced some office perks to mitigate costs. Google also argues that hybrid work does not make sense for some on-site benefits that employees previously enjoyed.