Intel unveiled cost-cutting and restructuring measures, including a two-year pause on planned chip plants in Germany and Poland, as chief executive Pat Gelsinger seeks to turn around the chipmaker’s flagging fortunes.
The announcement follows a crunch board meeting last week for the US chipmaker, whose shares have fallen sharply since August when it reported disappointing earnings results and an initial round of cuts, as well as a pause to its dividend.
As well as making further moves to establish its chip manufacturing business as an independent subsidiary, Intel also plans to “reduce or exit” about two-thirds of its real estate globally by the end of the year. A plant in Ireland, which is being built with funding from private equity group Apollo, will remain the company’s “lead European hub”, Gelsinger said in a note to employees.