Intel to cut 10 percent of work force [View All]

http://news.yahoo.com/s/ap/20060905/ap_on_hi_te/intel_restructuring

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Intel to cut 10 percent of work force


By JORDAN ROBERTSON, Associated Press Writer
27 minutes ago

SAN JOSE, Calif. - Chip-maker Intel Corp. said Tuesday it will eliminate 10,500 jobs — about 10 percent of its work force — through layoffs, attrition and the sale of underperforming business groups as part of a massive restructuring.

The Santa Clara-based company said most of the job cuts this year will come from its management, marketing and information technology ranks, and will expand next year to include manufacturing, design and other segments.

The cuts are expected to save the company $3 billion per year by 2008. Severance costs are expected to total $200 million.

"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," Chief Executive Paul Otellini said in a statement.

The world's largest chip maker is fighting to reverse sinking profits and regain market share stolen by smaller rival Advanced Micro Devices Inc.

Intel has been under intense pressure to unload money-losing divisions and halt the encroachment of AMD on its lucrative core business making the microprocessors that act as the brains of computers.
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Even more high-paying jobs disappearing and being replaced with crap service jobs that have no benefits or pensions.