A large technology company abandoning production plans in Europe and announces new dismissal rounds
Intel stand at a technology conference Photo source CFOTO / IMAGO STOCK & PEOPIA / Profimedia
Intel has announced new measures in his plan of recovery and discounts. The company is abandoning the plans to produce chips in Germany and Poland and announces that it will continue the dismissals, write Reuters and Euronews.
In a message addressed to employees, CEO Lip-bu tan announced that Intel permanently gives up production projects in Germany and Poland, projects that had been suspended in September, and slows construction work at the Ohio-state unit.
Intel had announced in March 2022 that he would build a microprocessor mega-factory in Germany, with total investments of 17 billion euros and obtained subsidies of 6.8 billion euros from the German authorities.
The company had announced a few months ago that it would give up 15% of the employees, and now the Intel chief said that new measures are applied, and the year will end with total number of 75,000 people, compared to 95,000 at the end of 2024. The decrease will be 22% overall.
John Pitzer, vice -president of investor relations, said that the renunciation of production units from abroad means that Intel “focuses on capital expenditures in the US” and that the group is “fully aligned” with President Donald Trump's agenda to rebuild the American manufacturing industry. He added that Intel is “on the right track” to complete his restructuring plans by the end of the year.
The head of Intel also announced that the assembly and test operations in Costa Rica will be moved to large production sites in Vietnam and Malaysia.
Intel has been in crisis for years because of management errors and the fact that he did not enter the AI race that made Nvidia a giant.
