JAKARTA Last April, Intel announced plans to terminate employment (PHK) without disclosing the number. Now, the target of reducing its employees has been revealed.
In this second-quarter financial report, Intel said it would end the year by employing these 75,000 employees. This means that there will be 24,000 out of 99,500 employees who will be dismissed this year, shrinking the number of Intel employees.
This is part of Lip-Bu Tan's efforts, Intel's new CEO, to overhaul the company after years of experiencing problems. He is determined to streamline the organization and address an unfavorable response to Intel's Artificial Intelligence (AI) business.
In addition to layoffs, Intel also plans to stop their projects in Germany and Poland. Previously, the company planned to spend tens of billions of dollars on a mega-fabs project that employs 3.000 employees.
They also plan to invest billions of dollars to hire 2,000 employees at assembly and testing facilities. The project is known to have been delayed for two years.
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Meanwhile, in Costa Rica, assembly and testing operations will be combined to a larger location in Vietnam, although more than 2,000 employees in Costa Rica are expected to continue working in engineering and corporate areas.
The company is also cutting its budget in Ohio, by slowing down construction to align spending with market demand. However, Intel's CFO, David Zinsner, ensures that investment and construction will continue there.
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