Intel Job Cuts Go Deep

Although most tests from critics like those at tech site Tom's Hardware show that Intel's Core 2 Duo processor is clearly outshining the competition from Advanced Micro Devices (AMD), the former continues to struggle financially.

Despite the fact that the Core 2 has given Intel the market edge it was quickly losing to rivals, the Santa Clara-based company is now preparing to lay off as many as 10,500 of its employees.

The announcement, as expected, came Tuesday. The lay offs are all part of Intel's massive restructuring plan, a strategy to regain control of the chip-production world that was made public this past April. However, the 10,500 jobs are casualties of a longer cycle, one that dates back to last July. It was at that period that concerning numbers became clear in examining Intel's finances: a 5% reduction in revenue year-over-year. (Source: betanews.com)

Most critics believe Intel has simply grown too much. Like Rome, its borders now encompass markets that most insiders argue are not the business of processing chip producers. Thus, the central part of Intel's reduction plan is to decrease employee numbers to 92,000 while at the same time shifting labor and general focus towards its most productive departments.

At one time, Intel employed 103,000 workers. The cuts are meant to contribute to the company's intented goal of reducing $1 billion of its own spending, a plan initiated by a comprehensive budgetary review launched some time ago.

As expected, Intel's shares rose eight cents Tuesday with the announcment of lay offs and further restructuring. (Source: wired.com)