Official information: Intel cut 10,500 employees

The chip giant announced that it would "remove" about 10,500 positions - equivalent to 10% of its personnel - through sacking and selling off the meager business divisions - in a major reform by the CEO. Paul Otellini started.

Intel said that most of the vacant location will belong to management, marketing and IT departments this year. In 2007, the company will continue to expand the "tight guillotine" to production, design and other parts.

As expected, this payroll cut will help Intel save $ 3 billion per year from now until 2008. Meanwhile, the total cost of layoffs is only about $ 200 million.

Source: Reuters Intel is in a difficult period of struggle with two sad conditions: continuous decline in profits and market share to rival AMD.

Otellini CEO stated that " these actions, though painful and difficult, are meaningful to Intel ". It helps the giant become more active and agile, "not only for a few years but also a long future later."

Disappointed!

By this time of the year, about 5,000 Intel employees have "gone" and there will be another 2,500 people who will continue to "pack" from now until the end of the year. The rest will be retired in 2007, making Intel's total workforce stop at 92,000.

Intel's official announcement of the second dismissal has surprised some experts and investors. Earlier reports all predicted that the chip giant would lay off more aggressively and introduce a superior strategy in dealing with failed businesses.

" This move is not as deep or as wide as we expected. They do not mention eliminating inefficient projects, on the contrary, they still insist: We can do everything we can. I am skeptical about the feasibility of this plan, "said Nathan Brookwood, an analyst with Insight 64.

Intel is suffering from a tremendous pressure to dissolve the losses and prevent AMD's "aggressive" aggression in the microprocessor market. Losing profits and market share, Intel was criticized for reacting too slowly after AMD released Opteron and Athlon 64 chips for servers and desktops that were highly appreciated.

Trong Cam