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Intel to lose 10,000 staff
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06/09/2006
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Intel is to cut its workforce by more than 10,000 in a move to make the company more efficient and to improve profitability. The moves will reduce staffing to 92,500 and create savings of around $3billion a year in 2008.
“These actions, while difficult, are essential to Intel becoming a more agile and efficient company, not just for this year or the next, but for years to come,” said Paul Otellini, Intel’s president and chief executive officer.
Most immediate job cuts will affect management, marketing and information technology functions. However, next year, the cuts will be applied more widely.
The company also says it will achieve what it terms ‘capital expenditure avoidance’ – another way of saying it won’t be spending money – of $1bn through better use of manufacturing equipment and space.
* Meanwhile, market researcher iSuppli says Intel has posted its lowest semiconductor market share for four years. Revenue fell by 12.8% from the previous quarter and its market share fell to 11.4%. Putting these figures in context, iSuppli says that semiconductor sales in Q2 grew by 1.2%.
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Author
Graham Pitcher
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