US Chip Titan Intel Cuts Workforce
(MENAFN) US semiconductor powerhouse Intel declared on Thursday that it is nearing completion of its initiative to reduce its workforce by 15% as part of a broader organizational revamp.
These job reductions, outlined in Intel’s second-quarter financial disclosure, mark one of the initial significant steps taken by new CEO Lip-Bu Tan, who assumed leadership in March.
In an internal communication issued on Thursday, Tan stated that the company is targeting a workforce of 75,000 core employees by year-end, not including its subsidiaries.
This is a notable drop from 99,500 personnel the previous year, achieved through a combination of layoffs and natural turnover.
“We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company,” Tan explained.
As part of the restructuring, Intel will abandon its upcoming projects in Germany and Poland and decelerate the progress on its chip manufacturing facility in Ohio, aiming “to ensure spending is aligned with market demand.”
Additionally, the company plans to shift its assembly and testing activities from Costa Rica to larger operational centers in Vietnam and Malaysia.
Despite this move, it intends to retain essential engineering and corporate teams within Costa Rica.
Formerly a dominant force in the tech sector, Intel has faced challenges after failing to capitalize on critical developments in mobile technology and artificial intelligence.
These missteps have triggered leadership transitions and speculation about potential acquisitions.
In contrast, competitor Nvidia recently became the first publicly traded company to attain a $4 trillion market capitalization.
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