Intel Approaches Finalization of 15 Percent Workforce Reduction
(MENAFN) US semiconductor titan Intel revealed on Thursday that it is approaching the completion of its plan to reduce its workforce by 15% as part of a broad corporate restructuring.
The layoffs, disclosed in Intel’s Q2 earnings report, represent one of the earliest significant actions taken by new CEO Lip-Bu Tan, who assumed leadership in March.
In a memo issued Thursday, Tan outlined Intel’s goal to end the year with 75,000 core employees—excluding subsidiaries—a sharp decline from 99,500 employees last year. This reduction will be achieved through a combination of layoffs and natural attrition.
“We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company,” Tan said.
To align spending with current market demand, Intel will halt planned initiatives in Germany and Poland and reduce the pace of construction at its Ohio semiconductor plant.
Additionally, Intel plans to move assembly and testing operations from Costa Rica to larger manufacturing hubs in Vietnam and Malaysia, while retaining vital engineering and corporate teams in Costa Rica.
Once dominant in the tech industry, Intel has faced setbacks due to missed opportunities in the mobile and artificial intelligence markets, prompting leadership upheavals and fueling takeover speculation. In contrast, competitor Nvidia recently became the first publicly traded firm to achieve a $4 trillion market capitalization.
Intel first announced last summer a 15% workforce reduction—roughly 15,000 jobs—part of a $10 billion cost-cutting strategy aimed at closing the gap in the AI chip sector.
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