Intel, the giant chipmaker, has revealed plans to lay off more employees in an effort to reduce its global manufacturing footprint and streamline operations.
The company anticipated “workforce reductions and attrition” to bring its headcount down to 75,000 by the end of 2025, as per a memo issued to staff on Thursday by CEO Lip-Bu Tan, Newsweek reported. This is in contrast to the 108,900 workers Intel claimed to have at the end of the previous year in an annual report submitted to the SEC.
Here's what Intel CEO said amid development of Ohio factories
Lip-Bu Tan, who took over in March as chief executive officer of Intel Corporation, stated that the firm will be halting the development of new plants in Ohio and ditching previously halted production projects in Germany and Poland in order to make sure “spending is aligned with demand.”
Although Intel has employees all throughout the world, the Americas account for a sizable portion of the workforce.
Many of the job cuts, according to Tan, have already been executed, and they could impact thousands of Americans in addition to those who would profit from the proposed Ohio factories.
{{/usCountry}}Many of the job cuts, according to Tan, have already been executed, and they could impact thousands of Americans in addition to those who would profit from the proposed Ohio factories.
{{/usCountry}}The Silicon Valley company's statement comes at a challenging time, as the value of its shares has been declining since early 2024 due to increased competition and alleged executive mismanagement.
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A look at Intel's earning
Intel released its second-quarter earnings, which ended on June 28, on Thursday. Revenue ended a four-quarter run of declining sales with a flat $12.9 billion, exceeding projections. Nevertheless, the business also reported a $2.9 billion quarterly net loss, nearly double the deficit from the same time previous year.
Following the mixed results and related declarations regarding production and staff reductions, the firm's shares saw a sharp increase in after-hours trading.
CEO Tan also stated that the company would consolidate its manufacturing operations in Costa Rica to larger sites in Vietnam and Malaysia, as well as bogging down the development of two planned factories in Ohio, which Intel claimed would generate 3,000 company jobs and 7,000 construction jobs when it announced the $28 billion project in 2022.
Meanwhile, Intel has predicted revenue for the third quarter to be between $12.6 and $13.6 billion, which is roughly equivalent to the $13.3 billion recorded for the same time last year.
Intel has observed increased concerns among its clients regarding the possible economic consequences of President Donald Trump's tariffs.