Intel is planning to separate its networking and communications unit into its own company, according to a Reuters report. The process of identifying investors has already been done with the separation being done to realign the company's business that has been experiencing high losses in recent years.
Last week, Intel CEO Lip Bu Tan confirmed plans to make Malaysia and Vietnam the center of chip assembly and testing operations while chip fabrication plant construction projects in Germany and Poland have now been canceled.
He also confirmed that the company will reduce its workforce by up to 15% with a target of only having 75,000 employees by the end of this year. By the end of 2024, Intel is reported to have 108,900 employees worldwide. In Q2, 50% of management level employees were laid off.