As if mounting oil prices aren't enough to make you sweat, the news of layoffs at Intel is going to feel like snakes slithering down you spine. Intel plants to declared some bad news on job cuts next
Tuesday and its in the 12 thousand ballpark figure, according to David Wu, an analyst at Global Crown Capital.
With increasing competition from Advanced Micro Devices, they want to stay trim and be able to wither out this stormy ride. Which makes you wonder, why on hell did they go on a hiring binge in the first place, where they grew from 79,700 employees at the end of 2003 to 102,500.
The Santa Clara chip giant is expected to announce layoffs Tuesday that could number in the thousands. Paul Otellini, chief executive of Intel, has scheduled a Webcast with employees for Tuesday afternoon to discuss the results of Intel's ongoing efficiency analysis. ``We hear that it is close to 10,000 layoffs,'' said Ashok Kumar, an analyst at Raymond James. Intel has already announced it would cut 1,000 managers and it agreed to sell off several communications related businesses, which will reduce payroll by another 2,000 by year's end. Kumar calculated that if Intel lays off 10,000 employees, that could save the company $1.5 billion in annual operating costs, or more than the amount targeted by Otellini.
Comment Preview