Intel Projects Were Stopped in Germany, Poland, and Costa Rica; The New CEO Downsized The Whole Company to A Third of Its Original Size

One such change has been caused by the new chief executive of Intel. With the trimming of operations, the company also canceled planned projects in Germany, Poland, and Costa Rica. In addition, the plan is to trim the whole company by one-third in order to streamline the entire form to cut costs, and generate more revenues.

Major Impacts in Europe and Latin America

This is worth noticing since the company was going to build a semiconductor manufacturing facility in Magdeburg, Germany. It was also part of a kind of package for Poland, which included a research facility and a development arm in Costa Rica. All these investments are huge. But, as Kramer took office recently, he identified all of them as "unnecessary expenses" and canceled them.

The tide of uncertainty wrought by this has almost extinguished in other countries any flicker of hope for an available rich technological sector. More so, Germany, whose ambitions to be Europe's leading base for semiconductor production, has felt the most impact.

Lean Intel- New CEO Strategy

"Lean Intel" was the name that Harold Kramer introduced for change management. This is the plan that took the company down to its barest minimum across manufacturing, research, and development, as well as operating departments. It is also what has seen a termination notice to 33% of employees, the shutting down of certain departments, and the closing of projects.

The essence of this transformation is to be much more competitive, for Intel to become far more profitable in terms of being highly agile in adapting technology.

Message to All Global Technology

The ripple of such an announcement is felt across the global geography-steeped technology sector, as majors batten down on costs and sharpen efficiencies. Analysts believe that such moves by this company encourage many others in the semiconductor industry to follow suit.

Intel discontinued projects in Germany, Poland, and Costa Rica opportunities for a huge part of the technology. And new CEO Harold Kramer wants to reduce the size of the company by a third and make the company more profitable in the future, as well as sustainable. This shows that in the future, sustainability and profitability are going to be the main drivers, not just investments in the technology sector.