Intel is to cut around 1,000 manager posts worldwide in
an attempt to become more competitive in the market. Other staff
positions are set to be announced next week.
Intel chief executive officer Paul Otellini told staff in a
memo, "This step is important because it addresses a key problem
we've found in our efficiency analysis: slow and ineffective
decision-making, resulting, in part, from too many management
layers."
Job cuts at Intel have been in the offing at the company for
some time as the leading chip processor attempts to tackle the
increasing challenge from its main competitor AMD head-on.
The 1,000 manager jobs will go immediately, and the company is
expected to reveal further restructuring plans next Wednesday (19
July).
This is the day Intel publishes its latest quarterly financial
results. Previous financial statements have included admissions by
Intel that AMD is taking away market share from the company in most
market segments.
Otellini said in his memo, "You should expect that we will
continue to take actions, including selective reductions, as we
complete analyses and decisions about investments, expense levels
and organisational structures."
On the management situation, Otellini added, "Over the last five
years at Intel, the number of managers has grown faster than our
overall employee population. Our efficiency analysis and industry
benchmarking have shown that we have too many management layers,
top to bottom, to be effective."
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