Layoffs Loom at Intel

By John G. Spooner  |  Posted 2006-09-01 Email Print this article Print

The conclusion of Intel's ongoing efficiency review could lead to layoffs of 10,000 or more at the chip maker in September, reports say.

Intel is expected to announce internally the results of its efficiency review on Sept. 5, a move that could result in thousands of layoffs.

The chip maker, which has already made a series of sweeping moves as part of the review, could cap the action by cutting 10,000 or more jobs, analysts have said. The company has about 100,000 employees.

Intel began the review and restructuring plan in April following missteps that battered its quarterly financials, saw its inventories rise and caused its market share to drop. It has lost several points of worldwide x86 processor market share to its rival Advanced Micro Devices of late. CEO Paul Otellini, in discussing the review with analysts, pledged to leave no stone unturned in the action.

Otellini, in an e-mail message to employees sent Aug. 31, said he will announce the results of the efficiency review during a company Webcast on Sept. 5, the New York Times reported on its Web site.

Although the review was scheduled to conclude in the third quarter, Intel began making moves much earlier in an effort to become more agile. Two July 2006 actions taken by the company, including cutting a number of management jobs and shuffling its senior executive ranks, were designed to improve internal communication and streamline decision making, the company said.

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John G. Spooner John G. Spooner, a senior writer for eWeek, chronicles the PC industry, in addition to covering semiconductors and, on occasion, automotive technology. Prior to joining eWeek in 2005, Mr. Spooner spent more than four years as a staff writer for CNET, where he covered computer hardware. He has also worked as a staff writer for ZDNET News.

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