Intel Takes Ax to Management
Intel (INTC) is laying off about 1,000 managers -- representing about 1% of its workforce -- worldwide as part of a previously announced restructuring program, the company said on Thursday.
The job cuts will begin immediately and will happen over the next few days, company spokesman Chuck Mulloy said. The layoffs are being done to reduce costs and to "improve decision making," he said.
Mulloy declined to say how big a charge the company would take for the layoffs or how much Intel expects to save over time as a result of them.
The chipmaking behemoth plans to release second-quarter earnings next week, he said. The outlook the company will provide then for coming periods will reflect the benefits of the job cuts, he said.The move marks one of the first steps -- and the first round of job cuts -- of a restructuring program announced in April. Last month, in another step in the effort, Intel sold to Marvell (MRVL) a division that makes processors for handheld devices. Intel is widely expected to have more moves in the works, including potentially thousands of additional job cuts. While still the dominant chipmaker, Intel has seen its market share decline and its sales slump recently amid stiff competition from AMD (AMD). The news had little impact on Intel's stock. In recent trading, the company's shares were up a nickel, or less than 1%, to $17.93.
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