(CTN News) – Intel recently released a statement in which it announced that it will decrease the number of manufacturing projects it is presently pursuing within its organization.

This report referenced one of the most critical operations currently underway in Germany and Poland. TechCrunch has reported that the organization has reassessed its expansion objectives in order to optimize operational efficiency and minimize expenses.

In order to enhance efficacy, this was implemented.

Lip-Bu Tan, who became the company’s Chief Executive Officer recently, is presently in charge of this endeavor. The second quarter’s financial report from Intel revealed that the company will not be pursuing the Polish and German initiatives that were previously announced.

The report disclosed this information. The report under consideration disclosed and publicized this information. Two of these facilities, a testing and assembly facility in Poland and a semiconductor production factory in Germany, were temporarily suspended in 2024.

Both of these facilities were situated in their respective countries. Poland was the location of both of these establishments. Another revelation was that Intel intends to relocate its testing operations from Costa Rica to the facilities it currently maintains in Vietnam and Malaysia.

Intel’s objective is to fortify its status as a market leader in the testing sector by implementing these concepts. In contrast to the demand, Tan stated during the earnings call that the company has invested an excessive quantity of capital in capacity over the past several years.

This was discussed in the context of the general demand. This was specifically addressed in the context of the corporation’s capacity investments. “We will ensure that our capacity expands in accordance with the current demand, as our factory footprint has become fragmented.”

It is highly probable that the semiconductor complex in Ohio, which is anticipated to be worth $28 billion, will encounter some challenges in the near future. The project has already been postponed twice this year, with the first postponement occurring in February and the second occurring in the near future.

The original intention was for the project to open in 2025. The initial date of its opening was postponed until 2025. Each of these setbacks occurred within the same year.

Tan has effectively concluded his initial quarter as head coach, a task that he has been performing throughout the quarter.

Since his appointment as CEO of Intel in March 2025, Tan has been unequivocal in his commitment to simplify the organization’s operations and reduce the number of unnecessary responsibilities. He has also expressed his intention to decrease the number of duties that are unnecessary.

Intel is cutting unnecessary bureaucracy and streamlining processes.

The process of “reducing redundancies and increasing accountability,” as Tan referred to it, will continue to progress throughout the third quarter. As an outcome of this advancement, the situation will be further developed.

Moreover, Intel acknowledged a number of adjustments to its workforce, which revealed a substantial decrease in the total number of individuals employed by the corporation.

By the conclusion of the year, it is anticipated that the organization will have employed a total of 75,000 individuals. This number represents a decrease in comparison to the 124,800 employees that were employed by the corporation in 2023.

The corporation has implemented a fifty percent reduction in the number of managerial levels in addition to the redundancies that have been implemented across all divisions.

Furthermore, Intel announced in June that its Foundry subsidiary, which is responsible for the design and fabrication of semiconductors for third-party clients, will be reducing its workforce by 15 to 20 percent. The public has been granted access to this material by Intel. By the conclusion of 2024, the organization had employed 108,900 individuals.

SOURCE: TET