Intel continues to pull back on its manufacturing projects

Intel is restructuring its manufacturing footprint, canceling planned facilities in Europe and consolidating operations globally. CEO Lip-Bu Tan explained the changes during the company’s second-quarter earnings report on Thursday.

Intel is officially dropping its chip production project in Germany and a testing plant in Poland. Instead, the company will centralize testing in Vietnam and Malaysia while phasing out activities in Costa Rica.

Tan admitted the company’s recent investments were “well ahead of demand,” leading to an inefficient global setup. He stated that all future capacity expansions will now be tightly linked to actual demand and measurable progress.

In parallel, Intel has continued reducing staff, reporting a 15% cut in total workforce. Tan confirmed the company aims to finish 2025 with 75,000 employees, down from nearly 109,000 a year prior.