Intel, the ailing semiconductor giant, said on Thursday that it expected its work force to shrink by more than 25,000 employees this year as the company continues searching for a turnaround.
The chipmaker, which reported 108,900 employees at the end of last year, said it now expected layoffs, attrition and other actions to reduce its head count to 75,000 by the end of 2025. Intel also disclosed that it will no longer move forward with plans to build factories in Germany and Poland, will further slow the pace of factory construction in Ohio and will consolidate operations in Costa Rica to larger sites in Vietnam and Malaysia.
Intel had signaled the need to cut costs in April. On Thursday, the company said it had cut its work force since then by about 15 percent, which indicates around 15,000 people were affected. The latest cuts follow a reduction of more than 15,000 jobs last year.
Intel quantified the cuts while releasing financial results for its second quarter, posting a $2.9 billion net loss that included restructuring charges from the latest belt-tightening. Revenue was roughly flat at $12.9 billion, which was higher than analysts predicted.
The Silicon Valley company projected another loss in the current quarter and revenues of $12.6 billion to $13.6 billion, indicating a $13.1 billion midpoint that compares with analysts’ average prediction of $12.6 billion for the period ending in September.
“I know the past few months have not been easy,” said Lip-Bu Tan, who was appointed Intel’s chief executive in March, in a letter to employees. “We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company.”
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The Silicon Valley chip company, which has been struggling, quantified the job cuts it is making as it seeks to turn its business around.