Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Intel Announces Job Reductions
Posted on 6-Sep-2006 09:40. | Tags Filed under: News.

Intel has announced plans for restructuring following an analysis of the company's structure and efficiency. As a result of the restructuring, the company expects to generate savings in costs and operating expenses of approximately US$2 billion in 2007. In 2008 the company expects savings from this restructuring to grow to approximately US$3 billion annually.

The savings are a combination of non-workforce related steps and a significant reduction in Intel's workforce. The company's employee population will decline to approximately 95,000 by the end of this year, resulting from workforce reductions, attrition and previously announced actions. The workforce will decline to approximately 92,000 by the middle of 2007, which is 10,500 fewer than the company's employee population at the end of the second quarter of 2006. In addition to the savings from the workforce reduction, the company expects savings in merchandising expenses, capital and materials.

Most job reductions this year will occur in management, marketing and information technology functions, reductions related to the previously announced sale of businesses, and attrition. In 2007, the reductions will be more broadly based as Intel improves labor efficiency in manufacturing, improves equipment utilization, eliminates organizational redundancies, and improves product design methods and processes.

The company expects severance costs to total approximately US$200 million, offsetting some of the expected savings from the project's implementation.

Intel is currently in its quiet period, so an update to its business outlook will not be made at this time. Further information concerning savings and costs related to the restructuring project will be provided in quarterly earnings releases and related business outlook estimates. The earnings release for the third quarter of this year is scheduled for publication 17 October.

comments powered by Disqus

Trending now »

Hot discussions in our forums right now:

Street Harassment - I'm looking at you Max Key
Created by gzt, last reply by Pumpedd on 29-Oct-2016 10:42 (97 replies)
Pages... 5 6 7

Gigabit cable now available
Created by sub, last reply by sub on 29-Oct-2016 10:04 (277 replies)
Pages... 17 18 19

Parking Breach Notices
Created by cisconz, last reply by wasabi2k on 28-Oct-2016 15:28 (19 replies)
Pages... 2

New Gigabit cable users decommissioned over weekend before install next week
Created by demdix, last reply by vortexnz on 29-Oct-2016 10:42 (18 replies)
Pages... 2

RNZAF Boeing 757 breaks down when carrying PM. RNZAF must have an atrocious dispatch reliability figure.
Created by amiga500, last reply by frankv on 28-Oct-2016 13:21 (91 replies)
Pages... 5 6 7

The Quest for the Holy Grail - aka VDSL
Created by cynnicallemon, last reply by cynnicallemon on 28-Oct-2016 22:42 (17 replies)
Pages... 2

New MacBook Pro
Created by ajobbins, last reply by JoshWright on 28-Oct-2016 18:27 (17 replies)
Pages... 2

Is it me, or have Trade Me prices increased?!
Created by Geektastic, last reply by mattwnz on 27-Oct-2016 14:58 (32 replies)
Pages... 2 3