Intel to decimate workforce - report
The AMD effect
By Ashlee Vance
Thursday 31st August 2006 22:10Â GMT
CNET has come out as the first organ willing to put a firm number on Intel's alleged upcoming mass layoff. The online rag reckons that up to 10,000 workers will be cleaved from Intel's payroll. Word of the layoffs should arrive next Tuesday after the stock markets close their regular trading sessions.
Rumors of large layoffs at Intel have swirled ever since CEO Paul Otellini said he would examine all possible cost cutting options. So far, Intel has relieved itself of two business units and fired 1,000 managers. According to CNET, things will get worse for the Intel regulars next week when the company decimates its 100,000 strong workforce.
The company has scheduled an internal web cast for Tuesday, which doesn't seem like an encouraging sign. "Intel CEO Paul Otellini will present employees a summary of IntelÂ’s structure and efficiency analysis," the company told its staff, according to a note seen by El Reg.
"We have said before that we will disclose the results of our structural review sometime in the third quarter," Intel spokesman Chuck Mulloy told us. "We won't comment on specific dates or plans or results."
European papers as well as dailies in states such as Oregon have speculated that Intel would make large cuts in the next couple of weeks. Workers have apparently sensed that the axe is about to fall and fall hard.
The reality of the situation though is that Intel cannot support its current workforce and expect to post glossy financial results. AMD has came out of nowhere to claim 25 per cent of the x86 server chip market and increased its desktop processor share. If these trends continue, Intel can expect to own 60- to 70 per cent of the x86 market as opposed to the 80- to 90 per cent that it's used to.
Intel sharpens axe for layoffs
Thousands, thousands
By INQUIRER staff: Friday 01 September 2006, 05:04
CHIP GIANT Intel could cut as many as 10,000 personnel, news.com reckons, and as early as next week.
We reported last month that thousands of jobs could go, worldwide, as CEO Paul Otellini completes the 90 day plan to get Intel back into shape.
In July, he cut 1,000 managers out of the Intel loop, but news.com reckons that the marketing staff will take the brunt of the layoffs. Marketing people, it is a sad but true fact, are usually the first branches to be lopped off the corporate tree.
The Wall Street Journal's take is that as many as 20,000 jobs could go. The current headcount stands at about 95,000 or so - surely there can't be 20,000 marketeers at Intel? The firm has fabs and other factories all over the place and these institutions are people heavy
Otellini to webcast Intel jobs news on 5th
Cut news inside Chipzilla earlier
By INQUIRER staff: Sunday 03 September 2006, 04:20
SOURCES INSIDE Intel said that CEO Paul Otellini will initiate an internal webcast relating to job cuts on the 5th of September.
However, while this webcast will be for all and sundry at the chip giant, the sources said that even mid-level managers are likely to get the news before this.
This is, we believe, the final stage of a widespread restructuring at Intel initiated in summer. It follows dissatisfaction at board level with the performance of the chip firm over the last couple of years.
Figures for the number of layoffs are not yet known, but as we reported last month, they're likely to be in the 10s of thousands.
* THE IRISH Post said that some cuts have already happened at Intel's plant in Leixlip, with staff already going.
Intel cuts Irish jobs in global restructuring
03 September 2006 By Gavin Daly
Intel, one of IrelandÂ’s biggest multinational employers, is laying off dozens of managers in Ireland and will this week announce details of more cuts after disappointing results.
Intel, one of IrelandÂ’s biggest multinational employers, is laying off dozens of managers in Ireland and will this week announce details of more cuts after disappointing results.
The staff have left the Irish operation in recent weeks as part of a ‘‘voluntary separation programme’’, according to a spokeswoman for Intel. She refused to comment on how many people had left the company, which employs about 5,300 people in Ireland.
Industry sources said that up to 100 Irish staff could have taken voluntary redundancy from IntelÂ’s manufacturing plant at Leixlip in Co Kildare.
It is understood that the departing staff received eight weeksÂ’ pay for each year of service, as well as other bonuses and pay for shift work.
Intel has been laying off staff worldwide in a bid to reduce costs. Further cuts are expected this week when chief executive Paul Otellini announces details of a plan to restructure the firm.
Analysts expect the company to lay off at least 10,000 of its 100,000 employees worldwide.
A cut of 10 per cent could see more than 500 people leave the Irish operation.
Intel Ireland spokespersons would not comment on the likely impact on the Irish workforce.
Neither the Department of Enterprise, Trade and Employment nor IDA Ireland had any information on possible cuts.
Intel plans to cut $1 billion in costs this year and has already laid off 1,000 managers worldwide and sold its application processor business.
The firm is also believed to be considering the sale of its loss-making flash memory division, which includes a factory at Leixlip. It is understood that the company has given the unit one year to make a profit or it will be sold off.
In a recent US stock exchange filing, Intel said: ‘‘We have finalised our plans to reduce 2006 spending by a billion dollars and are continuing the comprehensive structural review of our company that we announced in April.”
Intel had revenue of $16.9 billion in the first half of this year, down 10 per cent on the first half of last year.