Intel CEO Announces Massive Layoffs and Halts Germany Plant Project
The new Intel CEO Lip-Bu Tan has announced extremely drastic cuts to stop the losses. Tens of thousands of employees should go by the end of 2025. Intel gives up the plans for new works in Germany and elsewhere.
Intel boss reveals the extent of the clearing
After Intel boss Tan had kept in the weeks and months since taking office as far as the planned savings are concerned, he has now revealed the entire extent of the clearing. By the end of the year, Intel plans to get rid of almost 110,000 employees by the end of 2024. When announcing the latest businesses, the Intel CEO not only gave information about the finances. He also announced that the number of employees should be pressed to only 75,000 by the end of 2025. At the end of the last fiscal year, Intel still had 108,900 employees worldwide.
Intel should spend significantly less money
With the gigantic number of layoffs, Intel wants to drastically reduce its running costs. By the end of 2025, these should drop to just $ 17 billion, and another billion dollars will be saved by the end of 2026. In addition to the layoffs, Intel also does not use the expansion of its manufacturing capacities. Tan basically undresses what his predecessor Pat Gelsinger had started.
Instead, as planned by Gelsinger, to build new locations for chipfearing in several countries and to make Intel a TSMC competitor as a manufacturer, Tan relies fully on “efficiency”. The new works in Germany and Poland actually intended are completely eliminated. In Magdeburg, two large semiconductor works were supposed to be created, with the packaging of the chips in Poland.
Intel plant closes on Costa Rica
It remains to be seen to what extent Intel has problems with German politics. In the fields on which Intel wanted to build his works near Magdeburg, grain is now growing again anyway. However, it does not remain in the absence of new works abroad. According to Tan, Intel even withdraws from Costa Rica, where you have been running a testing and packaging location for decades. The tasks that have been completed there will in future be taken over by other locations in Vietnam and Malaysia, said Tan.
The construction of a new Intel plant in the US state of Ohio is to be “slowed down”. The new Intel boss apparently wants to give the company time to get financially back on safe soil. Intel had already released thousands of employees in the past few weeks and months. Tan had already indicated in the period since March 2025 that he was planning severe cuts. Among other things, Intel had already announced that marketing has practically completely outsourced the advisory group of accenture, where AI is to be used primarily. Intel had become increasingly difficult in recent years, which even has a sale or at least a splitting of the company.
