Intel reduces manufacturing plans, aims to trim workforce by a third
Intel has revealed that it will scale back on its manufacturing projects, including halting or delaying key initiatives in Germany and Poland.
The company, under the leadership of new CEO Lip-Bu Tan, has taken steps to reduce inefficiencies by reevaluating its expansion plans, as reported by TechCrunch.
In its second-quarter earnings report, Intel confirmed that it would not be moving forward with previously announced projects in Poland and Germany. These included a testing and assembly facility in Poland, and a chip production plant in Germany, both of which had been paused in 2024 following an initial suspension.
Intel also disclosed plans to consolidate its testing operations, shifting resources from Costa Rica to its existing facilities in Vietnam and Malaysia.
“We made investments in capacity over the last few years that were too far ahead of demand and excessive,” Tan said during the earnings call. “Our factory footprint became fragmented, and going forward, we’ll ensure our capacity grows only in line with actual demand.”
Intel continues to pull back on its manufacturing projects | TechCrunch https://t.co/K8Oz6ARV3j
Further delays are expected for the company’s $28 billion chip manufacturing plant in Ohio. Initially set to open in 2025, the project was postponed earlier this year in February, with another delay now on the horizon.
This quarter marked the first full period with Tan at the helm. Having been appointed as CEO in March 2025, Tan has outlined a vision to cut non-essential operations and streamline Intel’s workforce. In line with this strategy, Intel is focusing on cutting inefficiencies and simplifying the company's structure.
“Reducing redundancies and increasing accountability is a key area of focus for me,” Tan explained, stressing that improvements will continue in the third quarter.
Intel also provided updates on its workforce, revealing a significant reduction in its employee base.
Intel confirms it will cut a third of its workforce by the end of 2025 https://t.co/zuxN0n5AoN
The company has cut about 15% of its workforce and is aiming to have around 75,000 employees by the end of the year, down from 124,800 in 2023.
The company has also reduced its management layers by 50%, following a series of layoffs across various departments.
In June, Intel announced plans to lay off 15% to 20% of workers from its Foundry unit, which designs and manufactures chips for external clients. The company employed 108,900 people as of the end of 2024.