Intel expected to unveil huge layoffs

[visaris]

http://www.boston.com/business/globe/articles/2006/09/01/intel_expected_to_unveil_huge_layoffs/

Estimates of potential job losses range from 10,000 to 20,000, people with knowledge of the plans told CNET and The Wall Street Journal. Intel has about 100,000 employees worldwide.

Interesting read. While the layoffs will generate cash savings in the long term and are needed, they do generate some upfront costs. I wonder if this will have any impact on their Q3 earnings report.

 

[Tutelary]

and likely the CEOs will rake in record compensation for cutting out the little man.

 

[Poncho]

wow... amazing that the media has more "insight" into what's going on at Intel than the employees do. Don't blindly believe everything that you read. There will be layoffs... but I don't believe at those numbers. It's looking like more of a re-deployment than anything.... but who knows.

 

[spaceman]

and likely the CEOs will rake in record compensation for cutting out the little man.

Likely? Whose idea do you think it was? Hmmm Ceo thinks to self. " Jeez if only I had 12 Super-Destroyers to Space Ski behind." Oh and don't forget the topless supermodels to crew them.

^^

 

[ToastMaster]

wow... amazing that the media has more "insight" into what's going on at Intel than the employees do. Don't blindly believe everything that you read. There will be layoffs... but I don't believe at those numbers. It's looking like more of a re-deployment than anything.... but who knows.

There've been plenty of times when company employees don't know how many/when/where layoffs are going to occur. They may hear a rumor, but upper management never announces lay-offs until every detail has generally been worked out.

At least, good upper management doesn't. :/

 

[Poncho]

There've been plenty of times when company employees don't know how many/when/where layoffs are going to occur. They may hear a rumor, but upper management never announces lay-offs until every detail has generally been worked out.

At least, good upper management doesn't. :/

Exactly... but that also means that the so called "media" doesn't know anything more. It makes good print to say " OMG... 20k people getting laid off" Sorry... but that's just BS. The highest figure I've heard around here was 10-15k... and that was when the rumor mill was in high gear and the fears were straight lay offs. It's not looking like it's going to go by the "every 9th person" method. It's looking like more of a redeployment and restructure.

 

[empoy]

we're all waiting for the announcement on our site which got almost ~10% of the initial 1000 managers lay-off. better have my resume updated

 

[gesicht]

remember the post about record intel losses for all the $$ they spent on the c2d research and development.

 

[empoy]

loses came from flash and also the non-core business units that Intel goobled up a few years ago

 

[NulloModo]

Lay offs, especially in the tech industry, don't always mean a company is under duress. More efficient manufacturing techniques, machines instead of people, can make up a lot of it.

 

[beowulf7]

Here's an updated article.

Intel, Following Hewlett-Packard Model, May Slash 10,000 Jobs
Source: Deseret News (Salt Lake City)
Publication date: 2006-09-05

By Bloomberg News

Intel Corp. Chief Executive Officer Paul Otellini today may announce a new round of job cuts, following thousands of reductions at Hewlett-Packard Co. that helped turn around that technology company.

In a Webcast to Intel employees around the world, Otellini will present plans stemming from the company's largest review of operations since the 1980s. Analysts including Mark Edelstone at Morgan Stanley predict Intel, the world's biggest semiconductor maker, will shed at least 10,000 jobs, or 10 percent of its total. That would be the biggest reduction ever at the company.

Otellini, 55, is responding to sliding profit and sales caused by market-share losses to Advanced Micro Devices Inc. Investors say the moves are aimed at overhauling the world's biggest semiconductor maker the way CEO Mark Hurd has reshaped Hewlett-Packard, the second- largest maker of personal computers. Hurd is cutting 15,300 jobs.

"They've got to step up, restructure their operations and start fighting back," said Michael Cuggino, who helps manage $750 million, including Intel shares, as president of Pacific Heights Asset Management LLC in San Francisco. "Hopefully they do what H-P has done: trimmed a lot of fat, revamped core operations and paid attention to operating metrics."

Shares of Santa Clara, California-based Intel rose 31 cents to $19.88 on Sept. 1 in Nasdaq Stock Market composite trading, the highest close since May. The shares have declined 20 percent this year, compared with a 7.3 percent drop in the Philadelphia Semiconductor Index. Palo Alto, California-based Hewlett-Packard has gained 28 percent.

Otellini in April forecast Intel's first annual sales drop in five years. While the company tried to create new markets for its personal-computer microprocessors, chief competitor Advanced Micro gained ground. Sunnyvale, California-based Advanced Micro had 22 percent of the market for chips that power PCs at the end of the second quarter, up from 16 percent a year earlier.

Excluding 1,000 management jobs eliminated in July and the announced sale of two units that will shave 2,000 more people from the payroll by year's end, Intel had 102,500 employees at the end of the second quarter.

"It's going to be a financial-turnaround type story the way we've seen at H-P," said Eric Ross, an analyst at ThinkEquity Partners in New York. He raised his rating on Intel shares to "accumulate" from "sell" on Sept. 1. "That drives margins up and is likely to drive the stock up."

Hewlett-Packard, after reporting an 8 percent drop in profit last year, may more than double its net income this year, according to analysts' estimates. Intel, whose net income rose 15 percent last year, may report a 45 percent decline in profit in 2006, analysts project. In the second quarter, Intel posted its biggest profit drop in more than four years.

Intel's job reductions end a hiring binge in which Intel has added more than 20,000 employees since 2003, when it had 79,700 employees, according to a regulatory filing. Morgan Stanley's Edelstone, who is based in San Francisco, predicts Intel will trim 15,000 to 20,000 jobs, including previously announced reductions.

The Silicon Valley area of California near San Francisco, home to many U.S. technology companies, has been cutting jobs since the technology bubble burst in 2001. In May, computer server maker Sun Microsystems Inc. said it would cut 13 percent of its workforce, or 5,000 jobs.

(c) 2006 Deseret News (Salt Lake City). Provided by ProQuest Information and Learning. All rights Reserved.

Publication date: 2006-09-05

 

[chrisf6969]

Dear Poncho,

We must regretfully inform you that your job has been terminated. You obviously play on the internet way too much by the sheer # of posts at hardforum and the times of the posts.

Too bad, so sad, later

Intel Corp.

Take from the INTRAnet at Intel.