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Intel closes Egypt business units

Intel says 'company improvement' is reason for closing R&D in Egypt

Intel is cutting 5% of its workforce worldwide.
Intel is cutting 5% of its workforce worldwide.

Intel has shut down its engineering and R&D businesses in Egypt, according to a statement from the company.

In a brief statement, Intel said that the decision "are being made to improve the company and those decisions have nothing to do with political situation in Egypt or anywhere else".

No further explanation was available from the company, and it was not clear how many jobs will be lost as part of the decision or if all employees will be relocated. One of the business units affected is thought to be Intel Mobile Communications, which has a development presence in Egypt.

In January, Intel warned that it will cut several thousand jobs, around 5% of its workforce, as it expects no revenue growth in 2014, in the face of a continued slump in PC markets.

The statement added that "Intel will continue to be actively present in the market" although it was not clear if this refers only to sales and marketing operations. The business unit concerned is consolidating operations in India and Germany, the company said.

In December 2013, Egypt's minister of communications and IT Atef Helmy inaugurated a new facility for Intel in Maadi technological investment zone, which the company said at the time was part of efforts to widen its international reach in R&D and build its presence in the country.

The news drew angry reactions from Intel employees on social media. Posting to the company's Facebook page for Egypt, one commenter said it was an unethical decision and that Egyptians should "clean out intel stuff from our Market!"