Intel Corp. (Nasdaq: INTC) announced on Friday that would cut 1,000 management jobs worldwide in a streamlining measure. The lay-offs, amounting to 1% of the company’s 100,000 workforce, will also affect Israel, where Intel will fire dozens of its 5,000 employees.
Intel has been affected in recent years by falling PC sales, mainly because of aggressive competition by Advanced Micro Devices Inc. (NYSE:AMD). In April, Intel reported a 38% drop in first-quarter profit as demand slackened for PCs and microprocessors from AMD continued to steal market share. At the same time, Intel CEO Otellini said the company would conduct a 90-day review of activities, in order to streamline, and that changes would be implemented as the analysis progressed, rather than waiting until the end of his review. These 90 days are now up.
Intel spokesman Chuck Mulloy said the reduction was the latest action in a broad restructuring announced earlier this year. He added that Intel would provide more details Wednesday, when it reports second-quarter results.
As part of this restructuring, Intel recently sold its wireless communications processor division (which includes Israel’s DSP Communications, acquired in 1999) for $600 million.
Intel Israel said, “Intel Corp. announced the laying off of 1,000 employees. Intel Israel is part of Intel Corp., so the decision might affect Israel. We cannot comment about the extent of the lay-offs.”
Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2006
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