January 8, 2007 – Intel plans to close its only R&D site in South Korea, where it developed digital technologies for personal use, as part of its wide-ranging restructuring activities, according to media reports.
The South Korean government jointly operates the Intel R&D site, and will continue research on its own, noted the San Jose Mercury News. Intel’s pullout reduces the number of foreign R&D centers in Korea to 14, the paper added.
In September Intel announced a sweeping restructuring following an analysis of the company’s structure and efficiency, citing plans to shave $2 billion in savings in 2007 (25% of that from costs, 75% from reducing operating expenses), with the total increasing to $3.0 billion in 2008. The move included laying off about 10% of its workforce (~10,500 workers), though nearly half of that total already had been achieved through attrition and previously announced actions, including the sale of its media and signaling business, its communications and applications processor business, and other management layoffs.