Intel CEO Lip Bu Tan yesterday issued a note to employees on the company's future plans and the efforts that have been and will be made to ensure the company's survival.
There is good news for Intel employees in Malaysia as he announced plans to consolidate assembly and test operations in Costa Rica to larger sites in Malaysia and Vietnam. Costa Rica remains an important country location for engineering teams and corporate functions. As previously reported, chip fabrication plant construction projects in Germany and Poland have now been canceled.
He confirmed that the company will reduce its workforce by up to 15% with a target of only 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.
The artificial intelligence (AI) strategy will also be changed from producing for training to focusing on performing inference and agent tasks. Also focused on revitalizing Intel's x86 ecosystem. For data centers it will start with Granite Rapids chips while for consumers it will be through the Panther Lake and Nova Lake series.