Intel to axe thousands of jobs

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.

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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