Intel Corp. Loses thousands of workers and cutting expenses while his new CEO endeavors to relaunch the fortune of the manufacturer of flea in difficulty who helped launch the Silicon Valley but has lagged behind the rivals like Nvidia Corp.
In a memo to employees, the CEO LIP-BU Tan said that Intel planned to finish the year with 75,000 workers, down 108,900 employees at the end of last year, through layoffs and attrition. The company had previously announced a 15%labor reduction.
“I know that the last months have not been easy. We make difficult decisions but necessary to rationalize the organization, generate greater efficiency and increase responsibility at all levels of the company, ”wrote Tan.
In addition, Intel will eliminate the projects provided before in Germany and Poland and also moves assembly and test operations in Costa Rica to larger sites in Vietnam and Malaysia. Costa Rica will remain a “home of key engineering teams and business functions,” said Tan in the memo.
In the United States, the company said that it “deepened” the slow construction of a semiconductor factory in Ohio.
Founded in 1968 at the start of the PC revolution, Intel missed the technological transition to mobile computing triggered by the release of the iPhone in Apple, and it has been more agile. Intel problems have been amplified since the advent of artificial intelligence – a booming field where the chips made by a rival formerly smaller Nvidia have become the hottest goods of tech.
The market capitalization of the company based in Santa Clara, California, was 98.71 billion dollars from the closing of the market on Thursday, compared to 4.24 billions of dollars from Nvidia.
