Intel lowers the boom on marketing, IT departments

The company hopes to save $2 billion in annual costs by knocking 10,500 employees off its payroll. That number includes several layoffs and divestitures already announced by the company, including the pending departure of 1,000 managers, and the sale of its communications unit to Marvell. Intel also sold some telecommunications assets to Eicon. About 2,000 employees were involved in those transactions. Including those layoffs, divestitures and its normal rate of attrition, Intel has already shed 5,000 positions, said company spokesman Chuck Mulloy. The remaining 5,500 cuts will bring Intel’s headcount down to 92,000 by the second quarter of 2007, and cost Intel $200 million in severance pay, he said.