US reports suggest Intel is about to announce thousands
of job redundancies. The reports say the job cuts could be made
early next week, but the company has not confirmed the
move.
In July, Intel announced a very poor set of second-quarter
results and pledged to carry on cutting operating costs, including
continued job cuts.
In the same month and in the run-up to the results, the company
announced that 1,000 managers would lose their jobs
immediately.
When the results came, Intel was expected to announce a further
big raft of redundancies among its lower ranks, but instead said
the ongoing job cutting would be targeted, and in smaller numbers
over the next few months.
The company started a review, initially expected to be completed
by the end of this month. But the latest US reports point to an
imminent big layoff announcement.
Intel announced second quarter sales of $8bn (£4.5bn), which was
13% down on the second quarter last year.
Operating profits were $1.1bn – 60% down on last year – and net
profits reached $885m (down 57%).
Intel has pledged that the recent introduction of its Core chip
family will help it boost its financial performance, with these
faster chips also being more energy efficient in users’
systems.
They will also help Intel in its fight against smaller rival
AMD, which is taking away market share from Intel.
In addition to the axed managers, Intel has also recently sold
its Xscale communications and applications chip business to Marvell
Technology, which reduced its headcount by 1,400.
Following that deal, Intel sold part of its telecommunications
business to Eicon Networks last month, stripping out another 600
jobs.
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