Intel will lay off 15% of its workforce this year and rules out investing millions of dollars in Europe.

Technology company Intel has announced it will lay off 15% of its workforce and cancel its European expansion, where it had planned to invest millions of dollars in new artificial intelligence (AI) chip projects.

According to the company, the staff reduction is aimed at creating a faster, more agile organization, and is included in Intel's second-quarter earnings report.

This is shaping up to be one of the first major decisions made by CEO Lip-Bu Tan since last March, according to US media.

Intel plans to focus its efforts on the AI chip market , as well as regaining its leadership in personal computer processors and developing its 14A technology for large customers.

Although the tech company's shares rose 3% in after-hours trading on Wall Street on Thursday, they were down 8.7% mid-day on Friday.

Intel reported at the end of 2024 that it had 108,900 employees, also across its subsidiaries, including the autonomous driving company Mobileye.

In addition, it said it plans to end this year with 75,000 employees in its main division, a figure that does not include subsidiaries, as a result of "staff reductions and attrition."

The tech company has faced a difficult few years, with its leadership lagging behind rivals after failing to predict two major technological transformations : mobile devices and artificial intelligence, prompting takeover rumors and a leadership shakeup, CNN notes.

Intel joins other major tech companies in laying off staff this year: Microsoft cut its workforce by about 9,000 in early July, and Meta laid off about 5% of its employees.

Categories: Economy, Tags: Stock Market, Unemployment, Technology