Great reform at Intel

CEO Intel said the giant was about to undergo a comprehensive overhaul. It is not clear what the number of fired employees will be.

Source: AP

" We are looking at the current structure and cost ," Paul Otellini said in a shareholder meeting. " We will conduct reforms, reduce and re-plan strategies for Intel to adapt to current and future business practices ."

However, the problem that many people are most concerned about is whether or not to cut staff, and if so, how many people will be cut down and not mentioned.

Otellini said last week, Intel made a Webcast broadcast to inform 100,000 employees worldwide of the "revolutionary" reform. It is expected that a comprehensive, comprehensive reform campaign will take place within 90 days, with the goal of cutting the cost of each small part while increasing the performance of employees.

" I want to make Intel a more mobile, flexible and agile group, " Otellini said.

" This is the first time since the mid-80s to date, we have re-evaluated the size of the company with this level of detail. All parts will be evaluated and reviewed. "Otellini said.

Intel hopes to save $ 300 million in a cut in investment projects in 2006, which it says is ineffective. Otellini's decision came after Intel released its latest financial results, as its first-quarter profit fell 38% from last year to $ 1.3 billion due to declining demand for personal computer chips.

New wind

In an effort to overcome the slowdown in AMD's market share and slow growth in revenue, Intel is planning to launch the largest new product series in years.

" New products based on Core microchip, both high-performance and energy-efficient, will be launched this summer. They will blow a new wind to all of the current product lines. Intel ".

Three new chips, each targeting a different market segment, will be launched in turn: first Woodcrest for servers in June, Conroe for desktops in July and Merom for notebooks in August. The reason Woodcrest was first released was because Intel found the server market to be its "weakest link".

In addition, Intel will also release Broadwater, a new desktop chipset, claiming it is the fastest chipset ever, in Intel history.

The step is not unexpected

Intel CEO Paul Otellini.Source: AFP

According to analysts, Intel's decision to reform is not unexpected, because its output costs are not in line with revenue and profit, especially when compared with competitors.

"Gone are the days when Intel was the number one, the supreme choice. In the past two years, we have seen prices fall as rain falls, but Intel still maintains the structure of the old days." , analyst Feibus said.

Because of this, Feibus thinks that Otellini was right when he decided to cut down on the bulky apparatus right now, instead of delaying it, the melon wire came when the situation got worse.

Feibus predicts that layoffs and staff cuts will take place across all parts of Intel, especially in the design sector, marketing which has the most disappointing performance when compared to competitors.

Thien Y ( Summary of CNET, AFP )