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January 21, 2009

Intel to Cut up to 6,000 Jobs

According to The New York Times: “Intel said Wednesday that it would lay off at least 5,000 people at some of its older chip manufacturing and test operations, as it grapples with a steep decline in demand for personal and business computers.

The company, based in Santa Clara, Calif., announced the cuts on Wednesday, less than a week after it reported a 90 percent drop in fourth-quarter net income to $234 million and a sharp drop in revenue.”

“Intel will close two test plants in Malaysia and one in the Philippines. It will also halt production at two chip plants in Oregon and California. As a result, 5,000 to 6,000 people will lose their jobs.”

Intel Corp.’s chief executive, Paul Otellini, told employees recently that conditions are uncertain.

  • At the end of 2008, Intel (NASDAQ:INTC) had 84,000 employees
  • Advanced Micro Devices, Inc. (NYSE:AMD) also recently revealed plans to cut nearly 9 percent of its work force.

Update (1-21-2009): Intel will end wafer production operations at the D2 facility in Santa Clara. However, not all employees will leave Intel; some may be offered positions at other facilities, the company said. The actions will take place between now and the end of 2009, according to Business Weekly

January 20, 2009

Intel CEO Says Conditions ‘Uncertain’

Filed under: Intel,Technology,US — DF @ 6:32 pm
Tags: , ,

According to WSJ: “Intel Corp.‘s chief executive, Paul Otellini, told employees last week that conditions are so uncertain in the first quarter that he could not rule out reporting a loss.”

Mr. Otellini is simply preparing employees for the worst, in terms of telling them why the company will be not be issuing them bonuses and otherwise watching its spending very closely.”

Update (1-21-2009): Intel to Cut at Least 5,000 Jobs

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