Intel to cut 15,000 jobs, including 1,000 managers

[kurth]

July 13 (Bloomberg) -- Intel Corp. Chief Executive Officer Paul Otellini will fire 1,000 managers worldwide, the biggest cuts in four years, in an effort to slash $1 billion in costs and restore profit growth at the world's largest semiconductor maker. Reducing the number of managers will help speed decision making Chuck Mulloy, a spokesman for the Santa Clara, California- based company, said in an interview today. Intel hasn't decided on any further cuts to its 100,000 workforce, he said. More announcements may come in the next few weeks, he said.

Investors are anticipating Intel will decide to cut as many as 15,000 jobs, according to American Technology Research analyst Doug Freedman. Today's reductions are part of a companywide review Otellini began in April after the company posted its biggest profit drop in four years. ``I don't see how you can have the biggest examination of the company since the 1980s without cutting jobs,'' David Wu, an analyst at Global Crown Capital in San Francisco, said before the announcement. He has an ``overweight'' rating on the stock. Wu said a reduction of 10,000 jobs is needed at ``a minimum.''

Intel shares, down 28 percent this year, rose 6 cents to $17.94 at 2:09 p.m. New York time in Nasdaq Stock Market composite trading. The shares initially declined to $17.76 on disappointment the company didn't announce bigger job cuts today. Advanced Micro, which has now more than 20 percent of the market for server chips, shed 34 cents to $22.50. The positions affected are in all departments, Mulloy said. Employees were told today in an e-mail. They were also told they can't apply for other jobs at the company, as is usually the practice, he said...

Investors were anticipating Otellini would cut 10,000 to 15,000 jobs, Freedman said. Reductions at the high end of that range will be viewed ``more favorably,'' Freedman wrote...

http://www.bloomberg.com/apps/news?pid=20601103&sid=aaeJ1J8QhB8A&refer=us

[AlCzervik]

1. my neighbor works for intel, he has something to do with the internal

network, maybe IT? Anyhow he's actually worried this time that he's losing his job.

[skids]

3. Well, I wish your neighbor the best of luck...

...mainly out of personal interest, because there's way to many of us network engineers saturating the job market right now. :silly:

[ChairmanAgnostic]

2. what a booming economy!

Hey you! and your department, go stand by that wall. "BOOM"