Intel reveals it will shed 24,000 employees this year and retreat in Germany, Poland, and Costa Rica

Intel, the semiconductor giant, has announced a major restructuring plan that will lead to the shedding of around 24,000 employees, or approximately 25% of its workforce. The company will retreat from planned projects in Germany and Poland, end its assembly and test operations in Costa Rica, and focus on its core operations, aiming to have around 75,000 "core employees" by the end of 2025. The decision comes as Intel's new CEO, Lip-Bu Tan, attempts to streamline the organization and align its investments with customer demand. The company has faced challenges in keeping up with the AI boom and has experienced a lackluster response in some of its business areas. Intel will also slow the pace of construction in Ohio, while continuing to make investments in the state. The company's data center business saw a modest 4% year-over-year growth, while its PC chip business declined by 3%. The foundry business, where Intel does chipmaking for other customers, increased by 3%. The restructuring is expected to result in $1.9 billion in costs, leading to a $2.9 billion loss for the current quarter. However, Intel is confident in the development of its upcoming flagship laptop chips, Panther Lake and Nova Lake, and is taking steps to improve its multi-threading capabilities.