ISTANBUL

US chip giant Intel announced on Thursday that it has nearly completed its plan to cut 15% of its workforce amid a company turnaround.

The layoffs, revealed in Intel’s second quarter earnings report, were among the first major moves by new CEO Lip-Bu Tan, who took charge in March.

In a Thursday memo, Tan said Intel aims to finish the year with 75,000 core employees, excluding subsidiaries, down from 99,500 last year, through layoffs and attrition.

“We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company,” Tan said.

The company will cancel planned projects in Germany and Poland and slow construction on its Ohio chip factory in the US “to ensure spending is aligned with market demand.”

Intel will also relocate assembly and testing from Costa Rica to larger facilities in Vietnam and Malaysia, while maintaining key engineering and corporate teams in Costa Rica.

Intel, once a tech leader, has struggled after missing key shifts in mobile and artificial intelligence, leading to leadership changes and takeover rumors. Meanwhile, rival Nvidia recently became the first publicly traded company to reach a $4 trillion market value.

Last summer, Intel announced it would cut 15% of its workforce – about 15,000 jobs – as part of a $10 billion cost-cutting plan to catch up in the AI chip race.