Intel Announces Thousands of Core Job Cuts, Cost Cuts

US chip giant Intel is planning to cut jobs and cut costs in an effort to recover after falling behind competitors such as Nvidia Corp and Advanced Micro Devices.

In a memo to employees yesterday, CEO Lip-Bo Tan said that Intel plans to reduce its “core” workforce, excluding its subsidiaries, to 75,000 through layoffs and natural attrition, down from 99,500 core employees at the end of last year. Intel had previously announced plans to reduce its workforce by 15%.

“I know the past few months have not been easy, and we are making difficult but necessary decisions to streamline the organization and increase efficiency and accountability at all levels of the company,” Tan wrote in the memo, according to the Associated Press.

Intel announced Thursday that it would abandon its multibillion-euro plans to build a factory in Magdeburg, eastern Germany.