Intel is abandoning some of its overseas expansion plans as it seeks to eliminate inefficiencies across its global operations. The company revealed Thursday that it will no longer pursue previously announced manufacturing projects in Europe, citing overcapacity.

Projects scrapped include a chip manufacturing plant in Germany and an assembly and testing site in Poland. Intel will also consolidate its test operations from Costa Rica into existing locations in Asia.

CEO Lip-Bu Tan admitted the company had spent too aggressively. “These investments were made ahead of realistic demand. They were excessive,” Tan said. He emphasized future growth would be guided by market commitments and defined milestones.

The company also announced it has reduced headcount by about 15%, with plans to finish the year at 75,000 employees. The layoffs include deep cuts to its Intel Foundry business, which serves external clients.