Pink slip inside: Intel to downsize its workforce in India
Mithun Roy
Monday, June 26, 2006 23:03 IST
Updated at 3.50 pm, Tuesday
MUMBAI: Intel Corp, the world’s largest chip maker, is planning to downsize its workforce in India. The $39 billion, California-based company will slash up to 50% jobs in phases from July, as part of global restructuring.
The company, currently, employs over 3,000 people in India, including engineers and 100 sales and marketing staff.
Intel plans to cut up to 16,000 jobs world-wide, after a study called ‘Efficiency Programme,’ to determine dispensable positions across its centres.
Company sources confirmed that Intel will start downsizing staff in India from the third week of July, and the employee strength will come down to around 1,500-2,000. The global recast is believed to bring down expenses by $1 billion.
An internal mail from Intel India president has already informed employees about the impending move.
Talking to DNA Money, R K Amar Babu (pictured), managing director (South Asia), Intel Technology India, said, “Intel has initiated an Efficiency Programme in India in line with similar programmes in other countries. The company is targeting under-performing businesses and the decision to begin lay-offs would be implemented in July.”
This is the first time in 20 years that Intel is conducting an in-depth review of its focus and structure.
Intel CEO Paul Otellini had said during his visit to India last month that every piece of Intel will be examined for efficiency and productivity.
Sun Microsystems, Apple Computers and Seagate Technology, too, have been giving employees the pink slips.
Sun is planning to slash 5,000 jobs worldwide. It will lay off around 1,000 of its workforce in India and 3,700 employees worldwide.
Apple Computers had already shut down its technical support in India and Seagate Technology had cut 6,000 jobs.
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