Tense day for Intel employees – 10,000 Layoffs Expected Today
It’s going to be a long and nervous day for Intel employees. The Santa Clara chip giant is expected to announce layoffs this afternoon that could number in the thousands. Chief Executive Paul Otellini has scheduled a Webcast with employees for this afternoon to discuss the results of Intel’s ongoing efficiency analysis.
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. “Otellini has been on a very strict path to bring the company to greater profitability and to streamline the company so it can be more focused on the mission,” said Tim Bajarin, an analyst with Creative Strategies. “It wouldn’t surprise me to see some layoffs.”
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