Intel announced on Thursday that it will cancel several manufacturing projects as part of a major restructuring plan led by CEO Lip-Bu Tan. In its second-quarter earnings report, the company said its efforts to streamline operations include halting development on plants in Germany and Poland.

The canceled projects include a semiconductor factory in Germany and a packaging and testing facility in Poland. The company will also wind down testing operations in Costa Rica and consolidate them at sites in Malaysia and Vietnam.

Tan said Intel had overinvested in capacity in previous years. “Our factory footprint has become needlessly fragmented,” he told analysts. “We’ll now only expand capacity in lockstep with actual demand.”

As part of the restructuring, Intel has already reduced its workforce by 15% and plans to close out 2025 with around 75,000 employees. The company had previously disclosed layoffs impacting 15–20% of its Foundry division.