Intel Will Shed 24,000 Employees This Year, Retreat In Germany, Poland, Costa Rica, and Ohio (theverge.com) 42
Intel announced it will cut approximately 24,000 jobs in 2025 and cancel or scale back projects in Germany, Poland, Costa Rica, and Ohio as part of CEO Lip-Bu Tan's sweeping restructuring efforts. By the end of the year, the struggling chipmaker plans to have "just around 75,000 'core employees' in total," according to The Verge. "It's not clear if the layoffs will slow now that we're over halfway through the year, but Intel states today that it has already 'completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent.'" From the report: Intel employed 109,800 people at the end of 2024, of which 99,500 were "core employees," so the company is pushing out around 24,000 people this year -- shrinking Intel by roughly one-quarter. (It has also divested other businesses, shrinking the larger organization as well.) [...] Today, on the company's earnings call, Intel's says that Intel had overinvested in new factories before it had secured enough demand, that its factories had become "needlessly fragmented," and that it needs to grow its capacity "in lock step" with achieving actual milestones. "I do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need when they need it, and earn their trust," says Tan.
Now, in Germany and Poland, where Intel was planning to spend tens of billions of dollars respectively on "mega-fabs" that would employ 3,000 workers, and on an assembly and test facility that would employ 2,000 workers, the company will "no longer move forward with planned projects" and is apparently axing them entirely. Intel has had a presence in Poland since 1993, however, and the company did not say its R&D facilities there are closing. (Intel had previously pressed pause on the new Germany and Poland projects "by approximately two years" back in 2024.)
In Costa Rica, where Intel employs over 3,400 people, the company will "consolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam." Metzger tells The Verge that over 2,000 Costa Rica employees should remain to work in engineering and corporate, though. The company is also cutting back in Ohio: "Intel will further slow the pace of construction in Ohio to ensure spending is aligned with market demand." Intel CFO David Zinsner says Intel will continue to make investments there, though, and construction will continue.
Now, in Germany and Poland, where Intel was planning to spend tens of billions of dollars respectively on "mega-fabs" that would employ 3,000 workers, and on an assembly and test facility that would employ 2,000 workers, the company will "no longer move forward with planned projects" and is apparently axing them entirely. Intel has had a presence in Poland since 1993, however, and the company did not say its R&D facilities there are closing. (Intel had previously pressed pause on the new Germany and Poland projects "by approximately two years" back in 2024.)
In Costa Rica, where Intel employs over 3,400 people, the company will "consolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam." Metzger tells The Verge that over 2,000 Costa Rica employees should remain to work in engineering and corporate, though. The company is also cutting back in Ohio: "Intel will further slow the pace of construction in Ohio to ensure spending is aligned with market demand." Intel CFO David Zinsner says Intel will continue to make investments there, though, and construction will continue.
I kind of wrote off Intel (Score:4, Insightful)
Stock BuyBacks killed Intel. If the company survives it'll be because somebody props it up in order to make sure there are two x86 CPU manufacturers.
It's a pity the b580 is come down to close to MSRP and it looks like a good card but I don't think it's going to be supported in a year. Which is madness.
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Are you legit AC troll replying to yourself? Or is your stalker just that good at imitating you now? BTW none of this crap is remotely related to Intel (much less their dGPUs which were the subject of this comment chain).
Re: I kind of wrote off Intel (Score:1)
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Ah, yes, the overpriced and incompetent "technology consultants" from IBM. Those that think arrogance can replace insight. That will go well.
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Oh, Intel wants to fail again in the discrete graphics market? After having done so, what, 5 times? I guess they are incapable of learning.
Re:I kind of wrote off Intel (Score:5, Interesting)
I don't think you can point at any one thing Intel did and say "that's what killed the company". I do agree stock buy backs did not help.
Back in 2006 when AMD bought ATI I thought for sure Intel was only moments away from buying Nvidia. It would have made sense at the time, but how would that have changed things in the long run? Who knows.
Would the roll-out of AI using high-powered Intel + Nvidia hardware have never happened?
Would AMD suddenly become the AI hardware powerhouse that Nvidia is today?
Would the Intel + Nvidia merger be like the Boeing + McDonald Douglas fiasco?
Remember that Intel survived the Itanium 64-bit disaster (Itanic).
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Remember that Intel survived the Itanium 64-bit disaster (Itanic).
They basically did that only because of the AMD64 architecture.
Re: I kind of wrote off Intel (Score:1)
https://www.calcalistech.com/c... [calcalistech.com]
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I don't see how you can fire a quarter of your staff and continue to support your products.
Intel's products aren't generating enough revenue, and they're losing money, so they don't have any choice.
Stock BuyBacks killed Intel.
Sure. Stock buybacks are magnifiers. If a CEO does a stock buyback and his strategy is successful, then the leveraged effect makes him look like a genius. But if the plan doesn't work, the leverage works in the opposite direction, and he looks like a fool.
Intel's strategy of designing chips and also running fabs is fundamentally flawed. Fabless AMD is doing well. Fabless Nvidia's market is forty times
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What leveraged effect would actually help the company?
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Stock buybacks use cash to reduce outstanding equity, so any increase or decrease in value is concentrated in fewer outstanding shares.
If the stock goes up, the company can reissue stock at a higher price and end up with more cash than it started with.
If the stock goes down, the company is in trouble, with a lower stock price and fewer cash reserves.
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they spend their whole days posting trash on Slashdot and nothing of value will be lost
Some goes for any president that does the same, right?
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I disagree. Bad tech killed Intel. At some point no amount of hype and mindless believers can hide that one.
And yes, I agree that Intel is dead. They will continue to walk around as a zombie for some time though.
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I'm just amazed that people continue to buy Intel hardware. Multiple security flaws that required massive performance hits to mitigate, CPUs that permanently damaged themselves without the necessary patches and a pathetic warranty response, and some of it is designed in Israel.
Once AMD's chips overtook Intel there really was no reason to buy Intel hardware.
Remove the "intel inside" stickers (Score:2)
Remove the "Intel Inside" stickers from Germany, Poland, Costa Rica, and Ohio.
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I have an "Intel Underside" sticker on a riscv64 board. Some vendor dumped a bunch of 16GB Optane nvme modules at ridiculously low price; I guess they got a shipment of laptops with these marketed as "accelerators" and had no use for the modules. The "accelerator" idea was broken because of Windows being inept of making any good use of them. On the other hand, for a proper operating system, a 16GB disk is plenty enough. This way, instead of some lousy SD card I got much faster than Flash nvme.
Retreating in Germany and Poland? (Score:4, Funny)
This story is just crying out to be Godwinned...
Will they then apply for H-1B visas? (Score:2)
https://x.com/theblaze/status/... [x.com]
VP Vance calls out Microsoft for doing just that.
Re: Will they then apply for H-1B visas? (Score:2)
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Not quite. In Germany, if you have a "desirable" specialty, you can get a residence permit with the perspective to eventually become a citizen. On the other hand, German bureaucracy is so slow and inept that most people go to other places.
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Well, German red tape is bad enough to turn people away that Germany actually wants. Obviously things can get even worse, no argument.
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What, he expected something else to happen? Seems he is not very smart...
Can't make an omelet ... (Score:2)
... if you fire all the chefs.
They had to fire people (Score:2)
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A monkey could accomplish the same (Score:2)
Standard script.
Instead of creating new products, cut costs. Then cut some more costs. Maybe acquire a company or two because they can't invent anything anymore.
Sell off the real estate where the facilities are located for a short term boost.
'Saw the same thing happen with HP. A succession of cost cutters (AKA "Loot and Scoot" management). What's left isn't pretty.