Intel expected to announce up to 20,000 lay-offs on Tuesday!
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Analyst: Intel to put off Israel investments
Intel is expected to announce up to 20,000 lay-offs on Tuesday, including hundreds in Israel.
Doron Avigad and Yuval Mendelson 3 Sep 06 16:43
Following weekend reports in the technology press claim that Intel Corp. (Nasdaq:INTC) will fire 10-20% of it workforce, amounting to 15,000-20,000 people, the ramifications of the news on Israel is now becoming apparent. The company is likely to fire hundreds of its 6,500 employees in Israel, and it may not stop there.
Raymond James Equity Capital Markets analyst Ashok Kumar believes that Intel will defer planned investments in new fabs, including those in Arizona and Kiryat Gat. Intel is due to complete construction of the Kiryat Gat fab by mid-2008. It is still unclear whether the company will still hire employees for the fab, which was the main reason for the governmentÂ’s hundreds of millions of dollars in set-up grants to the company, in view of the cutbacks and lay-offs.
The cutbacks at Intel follow the serious deterioration in the companyÂ’s financial results and the competition against Advanced Micro Devices Inc. (NYSE:AMD) in the semiconductor market. IntelÂ’s second quarter profit plummeted 57%, compared with the corresponding quarter of 2005, to $885 million, and its revenue fell 135 to $8 billion.
An announcement about the current wave of lay-offs is expected this week, probably after trading closes on Wall Street on Tuesday. (The US markets are closed tomorrow for Labor Day). -
wa siao... retrenchment again
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Intel cuts 10 per cent of work force
Decimation
By INQUIRER staff: Wednesday 06 September 2006, 03:58
CHIP FIRM Intel said it will shed 9,500 jobs by the end of this year, less than some had expected. It axed 1,000 managerial jobs in the summer, and so the final total will be 10,500 - about 10 per cent of its work force. It's decimation.
The cuts will come from marketing, management and IT support, and are expected to deliver billions of savings for 2007 and beyond.
Earlier this year, Intel cut 1,000 of its managers and has also divested itself of some of its loss making businesses. The chip giant expects the cuts to save $2 billion in 2007 and $3 billion in 2008.
The job cuts will eventually bring the work force down to about 90,000 people. -
omg intel got factories in Malaysia ah?
produce which chips?
Core 2 Duo?
hope the chips manufactored there wont be crappy...