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The Tamias Assisi, Intel manufacturing giant has announced plans for a new labor reduction, while the company tries to rationalize operations by reducing its global manufacturing footprint.
In a Memo sent to employees On Thursday, CEO LIP-BU Tan said that the company expected “reductions and attrition of staff” to reduce the workforce to 75,000 at the end of 2025. Compared to 108,900 employees Intel was boasted at the end of last year, according to an annual report filed with the Securities and Exchange Commission (SEC) of the United States.
Tan, who took the bar in March following the departure of Pat Gelsinger, said that the company would abandon manufacturing projects previously interrupted in Germany and Poland, and slow down the construction of new factories in Ohio to ensure that “expenses are aligned on request”.
Nowsweek Contacted Intel via its website concerning job deletions and to request the number of them will have an impact on American employees.
Why it matters
Intel employees are located on a global scale, with significant concentrations in America. The job cuts, many of which have already been completed, could affect thousands in the United States beyond those that benefit from the planned Ohio factories.
The announcement arrives at a difficult period for Silicon Valley Company: its share price has continued to decrease in decline since the beginning of 2024 in the middle of growing competition and poor management perceived by its leaders.
What to know
Intel on Thursday announced its results for the second quarter, ending on June 28. Income was stable at 12.9 billion dollars, which exceeded the forecasts And marked the end of a sequence of four quarters of declining sales. However, the company also displayed a quarterly net loss of $ 2.9 billion, About to double the loss for the same period Last year.
The actions of the company have increased sharply in the exchanges after the opening hours following mixed results and coïcial announcements concerning manufacturing and job cuts, but were Down almost five percent at 4:30 am.
In addition to slowing down the construction of two factories provided for in Ohio – which, according to Intel, would create 3,000 corporate jobs and 7,000 construction jobs announcing the $ 28 billion project in 2022– Deo Tan announced the consolidation of its operations in Costa Rica at larger sites in Vietnam and Malaysia.
Justin Sullivan / Getty images
“In recent years, the company has invested too much, too early – without adequate demand,” said Tan in the memo on Thursday. “In the process, our factory imprint has become unnecessarily fragmented and underused. We must correct our course.”
Tan added that the company intended to adopt a “judicious and disciplined” approach to its technological developments, and that future investments in its new generation manufacturing technology, 14A, would be based on “commitments of confirmed customers”.
“There are no more virgin checks,” he said. “Each investment must have an economic meaning.”
In a file with the dryThe company said that it may be forced to take a break or cancel the development of Intel 14A “if we are unable to secure an important external customer”.
What people say
The CEO of Intel Lip-Bu Tan, in its memo to employees, wrote: “I know that the last months have not been easy. We make difficult decisions but necessary to rationalize the organization, generate greater efficiency and increase responsibility at all levels of the company.”
“We are focused on laser to strengthen our basic product portfolio and AI roadmap to better serve customers,” Tan said in a Press release from gains. “We also take the necessary measures to build a more disciplined financial foundry. This will take time, but we see clear opportunities to improve our competitive position, improve our profitability and create a long -term shareholder value.”
John Pitzer, vice-president of investors relations,, said in March that the company was “fully aligned” with the Asset The objective of administration of manufacturing capacities on the will in the United States
“Our interests and the interests of the administration are entirely aligned. We like to remind people that, as the administration goes to bring manufacturing to the United States, we have never left.”
What happens next?
For the future, Intel expects the third quarter income to be between $ 12.6 and $ 13.6 billion, largely in accordance with $ 13.3 billion reported For the same period last year.
Although semiconductors are currently exempt from President Donald Trump’s prices, Intel A Increased among the its customers on their potential economic impact.
