Intel to Hire Outside U.S. Despite Job Cuts
NEW DELHI (Reuters) - Microchip giant Intel Corp (NasdaqNM:INTC - news) said on Wednesday it would continue to hire people at its units outside the United States despite 5,000 job cuts announced earlier this year as a result of a slowing economy.
The hiring and fresh investment would help the world leader in computer chips develop technologies and uses for its products that would offer strong business potential when the economy picks up, Patrick Gelsinger, a vice president at Intel, told reporters.
``Our headcount is shrinking in the U.S. and increasing globally,'' said Gelsinger, who is also Intel's chief technology officer for its technology and research labs.
``Despite the cut in people from 89,000 to 84,000 we will increase headcount internationally including in India.''
Intel in March announced 5,000 job cuts and forecast a first- quarter revenue fall of about 25 percent below fourth quarter levels as the flagging U.S. economy hit personal computer demand and spread to the networking, communications and server sectors. Results reported in April were, however, slightly better than expected despite a steep 82 percent fall in net income and a 16 percent fall in first quarter sales.
Intel was also upbeat about business in the second half of this year and reiterated plans to spend $7.5 billion this year on capital spending and $4.2 billion on research and development.
Gelsinger said Intel planned to increase the strength of its Indian research and development center to 500 professionals by the end of this year from the existing 400.
The center, located in the southern tech capital city Bangalore, was launched with 20 employees two years ago.
``We're investing tons of money in spite of the slowdown. We have to innovate our way out, not save our way,'' Gelsinger said.
He said Intel was working on building high-performance, small and sleek personal computers, pervasive wireless computing, integration of diverse computer and telecommunication networks, speech processing by computers and audio and video capabilities on wireless devices. |
