Intel Prepares to Slash 2000 More Jobs

[malware]

Intel plans to cut an additional 2,000 jobs from its payroll to cut costs, executives announced Oct. 16 after an earnings report that showed both income and margins up in the third quarter of 2007. CEO Paul Otellini and executives told analysts and reporters during a conference call Oct. 16 that the Santa Clara, Calif., company expects to save about $1 billion in 2008 on payroll cuts and a switch from the 65-nanometer processors to the new 45-nanometer processors, which are cheaper to manufacture. The strategy of reducing and saving began in 2006, when Intel's employee roster stood at about 94,000. It now stands at 88,000.

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[Tatty_Two]

They are just getting greedy! After seeing their HUGE profits this year to date some of those employees may just feel a little hard done by.

 

[mandelore]

Thats sad... Yes greed is the player here. They are getting so big they can just chuck those deemed not profitable. and think they are worth so much that if they need they can just rehire.

I guess to them people are just tools

 

[Deleted member 3]

It's not greed, it's called looking into the future. Apparently these people are not required, and to keep growing firing them is the solution. Intel is a business, not a homeless shelter.

 

[ex_reven]

I have to agree with dan.

Not that its not terrible.
But imagine having too many workers in a small business scenario, you would have to do the same thing. Just because the company is rich doesnt mean they shouldnt look after their money, its just good business I guess. Its a shame they couldnt be relocated to another sector of the company.

 

[Tatty_Two]

It's not greed, it's called looking into the future. Apparently these people are not required, and to keep growing firing them is the solution. Intel is a business, not a homeless shelter.

A business that has made Huge profits already from these people so they to date have hardly been "homeless". I am all for "streamlining" Operations, I am in fact currently managing a similar, albeit much smaller scaled exercise with the organisation I work for, my comment was based on the fact that there are countless examples of streamlining that actually lead to negative production, returns and outcomes, there is an old saying of course, and it still applies on occasions........"dont fix what dont need fixing"!

of course I dont know what Intels future strategy is and I am not suggesting this is not necessary.....your right, it's business all my point was is that those "homeless" employees contributed to the companies huge profit this year, and their reward is....well you get my point.

 

[Deleted member 3]

I agree that there must be other solutions, ie expanding other divisions or something. However I think the huge profit Intel makes shows they know what they're doing.

Perhaps they're replacing people with their new chips

 

[Tatty_Two]

Robotic production lines run by Intel 45nm Yorkfield quads, each chip fabricating 4 chips at a time

 

[effmaster]

I agree that there must be other solutions, ie expanding other divisions or something. However I think the huge profit Intel makes shows they know what they're doing.

Perhaps they're replacing people with their new chips

Hopefully they havent already pickedthe 2000 people and will offer benefits to those that do say they wouldnt mind quitting. Similar to what car companies like Ford are doing. This would show that they are at least using that extra profit and giving some of it extra to their employees through benefit offers of Intel's choice.

 

[WarEagleAU]

well tbh, 94000 folks is alot of folks for a company like that. What can they all be doing?

 

[Tatty_Two]

well tbh, 94000 folks is alot of folks for a company like that. What can they all be doing?

Making CPU's??????

 

[jocksteeluk]

i bet the could have made 3 or 4 CEO's redundant and saved the same amount of money. Loyalty obviously goes out the window when it comes to making money and no doubt that will be a lesson learned to the 2000 employees.

 

[kwchang007]

I bet most of these 2000 jobs are middle level managers they don't need. People that don't contribute to marketing or R&D. Also, didn't Intel just get done building an entire fab plant? Maybe that's where some of the jobs came from anyways, cause after it's built they probably don't need those people anymore (then again it probably was contracted to an outside company)